The former directors of Mainzeal Construction have issued a statement contradicting media comments they did not know the full extent of the company's financial troubles.
New Zealand's third largest construction company went into receivership on Wednesday, jeopardising the jobs of more than 400 employees as well as sub-contractors.
The BNZ has appointed PricewaterhouseCoopers as receiver, which is looking at Mainzeal's accounts.
The former directors, Dame Jenny Shipley, Paul Collins and Clive Tilby, say they were well aware of Mainzeal's financial position at all times.
The directors said they had arrangements in place, as well as equity support, from shareholder Richina Finance up until late January this year. They said those undertakings and assurances then changed unexpectedly prompting the BNZ to withdraw its support, and the directors had no choice but to resign.
The directors said until then, they had a three-year business plan in place, banking arrangements, and negotiations were being held with Mainzeal owner Richard Yan regarding the future support of the company which would have seen it return to profitability this year.
But Mr Yan put the company into receivership, citing difficult trading conditions and the withdrawal of shareholder support from parent group, Richina Pacific, as the explanation.
PricewaterhouseCoopers is expected to meet with a number of Mainzeal's major clients in coming days, including the Auckland Council and the Canterbury Earthquake Recovery Authority.
Mainzeal's projects include the new campus at the Manukau Institute of Technology, Wellington Airport's international terminal, The Hub at Victoria University in Wellington, the HVDC Inter-Island Pole 3 and demolishing the Claredon Tower in Christchurch.
It is also involved in the reconstruction of Christchurch through a joint venture with MWH, which also includes Vero, to repair and rebuild quake-damaged properties.
The Auckland Council has two major projects being built by Mainzeal and is also working with it on the repair of a leaky building.
Concern for other businesses
A group representing contractors says businesses will go under because of the collapse of Mainzeal.
The Electrical Contractors Association deals with more than 1000 electrical businesses and says many have contracts with Mainzeal.
Association chief executive Neville Simpson says those in smaller businesses particularly will suffer.
Mr Simpson says his and other associations representing contractors are trying to arrange a meeting with the Minister of Building and Construction within the next fortnight to discuss ways to protect sub-contractors.
An ideal solution would be to put the money owed in a trust account, he believes.
