12 Feb 2013

Further collapses not expected by Arrow

7:09 am on 12 February 2013

The construction sector is hurting due to subdued activity and thin margins. But Arrow International does not expect any further collapses says and much of the Mainzeal fallout will be carried by subcontractors.

Arrow International has annual turnover of about $220 million a year and employs about 300 people.

Chief executive, Hugh Morrison said Mainzeal's collapse will weigh more heavily on subcontractors.

Mr Morrison said Arrow is interested in some of Mainzeal's contracts and staff, but warns changes to tender prices and the fate of out-of-pocket sub-contractors are complex issues that will need to be tackled.

Mainzeal Property and Construction went into receivership on Waitangi Day.

The receivers from PwC say they have been working with contractors and sub-contractors to give them access to the sites to retrieve their tools and other property.

They are continuing to evaluate projects in an effort to restart or transfer work on some sites as soon as possible.

They are also in talks with potential buyers but would not name the interested parties.