By JOSIE CLARKE
Angry creditors learned yesterday collapsed construction company Goodall ABL Construction Ltd could end up owing more than $12.3 million.
During the tense two-hour meeting of at least 300 people, one contractor said he was likely to go out of business as a result of Goodall's voluntary liquidation on March 1, and demanded to know how much money Goodall director Graeme Hill had in his personal account.
Goodall ABL had eight construction sites around Auckland. The liquidation cost 23 workers their jobs and affected dozens of subcontractors.
In his address to the meeting, Mr Hill said the company's problems began in the latter stages of its contract to build 68 apartments at The Quays in the Viaduct Harbour.
Directors understood in November last year that the contract was marginal, but it now appeared it would incur losses of about $3 million.
In explanation, Mr Hill said the company's significant business growth caused a cash-flow shortage. The directors and a family company, GR Hill Ltd, injected cash in October and November but the situation grew worse early this year.
Directors designed a proposal involving to fix what they understood was a manageable shortfall but could not reach agreement with creditors. Subcontractors started leaving sites, causing the company to default on some contracts, followed by the directors' decision to liquidate.
He said the company suffered its biggest loss as the main contractor on the Princes Wharf's Shed 24 development, an exclusive water's edge apartment block with penthouses costing up to $2 million.
Liquidator Rod Pardington of Deloitte Touche Tohmatsu told the meeting there would be significant losses, but it was still too early to detail how much Goodall ABL owed which creditors.
Yesterday's meeting ended with the creditors selecting a nine-member liquidation committee.
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