Auckland builder placed in receivership

Press, 20 November 1982, Page 19

Auckland builder placed in receivership

PA Auckland The McKerras group of companies—one of Auckland's oldest and most respected construction contractors—has been placed in receivership. Its directors asked the National Bank of New Zealand to take the action, which is effective from yesterday. Mr David Mace and Mr Bryan Kensington have been appointed receivers and will make a full assessment of the company’s position before making decisions on its future. Involved are McKerras Holdings, Ltd, McKerras Industries, Ltd, McKerras Construction, and Wiri Timber and Hardware Supplies. The group employs a staff of 100 and is working on 11 jobs, mainly for the Ministry of Works .and the Department of Education, in the Auckland area. Work is almost completed at most of the sites. The company, established in 1939, specialised in building churches, schools, old

people's homes, and light factories. Mr Mace spoke to the staff at the Wiri head office yesterday and assured them that a decision on their, and the company’s future, would be made as soon as possible. He could not reveal the amount for which McKerras has been placed in receivership but said that the sum was considerable. “We will assess the company’s position and then decide whether to continue operations, dispose of some parts of the operation, or. close down and sell up,” he said. Mr Mace said a contributing factor to McKerras’ position was the very fine profit margin in construction work. This combined with a very serious liquidity problem in the economy to bring the company to receivership. McKerras’ finance manager, Mr Nick Pinchin, said the company had had good reserves, but the time had come to place itself in the hands of the bank. .