8 Feb 2013

Mainzeal receivers consider options

7:05 am on 8 February 2013

Mainzeal Construction and Property's receivers say they won't know if the failed construction company is a going concern until at least early next week.

PWC (formerly PricewaterhouseCoopers) says already, half a dozen prospective buyers have expressed interest in snapping up some or all of the company's assets.

Mainzeal went into receivership on Wednesday afternoon after the company's owner, Richard Yan, could no longer support the construction firm financially.

On Thursday, staff and subcontractors were locked out of Mainzeal's 40 building sites around New Zealand.

One of PWC's receivers, Colin McCloy, won't confirm how much Mainzeal is worth, or how large its debts are, but selling the company one option being considered.

Mr McCloy says another option could be to sell off individual contracts or groups of contracts.

A spokesman for Fletcher Building says it may be interested those opportunities.

PWC says Mainzeal staff will keep their jobs at this stage as they are helping with the receivership process.

Each of the company's construction projects is currently being individually assessed and work will resume at each building site on a case-by-case basis.

Meanwhile, at least one listed company says it's likely to be significantly affected by the receivership of Mainzeal Property and Construction.

The Eastern Bay Plenty lines company, Horizons Energy Distribution, says its subsidiary, Aquaheat, an engineering and contracting firm, is owed money on a number of contracts with Mainzeal.

Horizons says it is working out the total amount, and chairman Rob Tait says it is clear it will have an impact on this year's profits.

Mr Tait says the loss of Mainzeal as a key customer will be a serious setback.

Mainzeal is New Zealand's third largest construction firm, behind Fletcher Construction and Hawking, and has been involved in projects worth $7.5 billion throughout New Zealand since being founded in the late 1960s.