Some "poorly performing" Auckland projects are being blamed for tipping Ebert Construction into receivership.
Lara Bennett, John Fisk and Richard Longman from PwC were on Wednesday evening appointed receivers to Ebert Construction Limited as a result of a request made by the Ebert Board of Directors to its bank.
A statement from the receivers said that Ebert’s Board had advise that it and the company’s newly appointed senior management team had been working to improve a number of poorly performing projects in the Auckland Region which have adversely affected the Company’s financial position.
"Last week, the Board was advised of likely substantial increases in the expected costs to complete those poorly performing projects. Alongside those poorly performing contracts, the Company’s portfolio of projects includes several well performing contracts. Notwithstanding this, the Directors formed the view that the Company could no longer continue trading given the impact of the actual and anticipated losses."
Receiver John Fisk told RNZ's Morning Report that: “We are committed to doing the best we can for the staff, subcontractors and suppliers of Ebert. We will work closely with all parties involved with the contracts in progress to determine the best way forward.”
Fisk reportedly expects Ebert to have a shortfall of about $40 million. He said the only firm affected was Ebert Construction Ltd.
"None of the other companies in the group are in receivership."
Ebert's sites also include Middlemore Hospital in Auckland, the Indian High Commission in Wellington and a number of projects in the South Island, he said.
The firm has previously done extensive work related to the dairy industry, and also for the defence force, and going back further it worked on Wellington Airport.