Published 10 July 2012
Hawkins Construction Ltd has put its jail-building subsidiary in Australia into voluntary administration as talks on a funding solution for the Ararat Prison extension project in Victoria stretch out.
McConnell Ltd managing director and Hawkins Construction interim chief executive David McConnell said yesterday the Auckland-based group was keen to remain involved with the project and was encouraged that discussions between the state government, Aegis’ receivers and the project’s funders were continuing, but disappointed they’d become so protracted.
“This is a complex situation outside Hawkins’ control and the company has now been forced to take steps to avoid incurring further costs & liabilities by placing Hawkins Ararat Pty Ltd – a special-purpose vehicle established specifically for the Ararat project – into voluntary administration.
“Voluntary administration effectively allows us to remain in a holding position on the project, without incurring further costs & liabilities, until the state and Aegis’ receivers manage to resolve a funding solution which will allow the project to continue.
“We believe there is a role for Hawkins on Ararat over the long term but, particularly following the receivership of our client Aegis, the project’s current commercial arrangements have become unworkable.”
Mr McConnell said Hawkins remained in a strong position and he didn’t believe this development would have any material effect on the company’s operations in New Zealand, or on its other projects.
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.