Hartner and subcontractors clash at meeting

3:15 PM - By ANNE GIBSON property editor

Bitterness over Wayne Hartner's multi-million dollar fortune riled out-of-pocket subcontractors at a meeting of Hartner Construction creditors today.

The creditors called for a share in the proceeds from the sale of Mr Hartner's luxury mansion and boat, but left the meeting disappointed and disillusioned.

About 200 tradespeople grilled receiver John Waller and Mr Hartner for nearly two hours, but got few answers to their questions.

In the end, Mr Waller threatened to walk out, said there was "zip" to pay subbies and suppliers right now, and that he did not have to front up to them.

"Look, I could sit in my office. I don't have to be here," he said, throwing up his hands in frustration.

The slanging match between Waller and the subbies mostly left out managing director Mr Hartner, who sat silently at the front, refusing to say whether his $6.7 million boat and $4 million house would be used to help pay the millions outstanding to creditors.

"I owe money to the bank on both the house and the boat. I don't know if there's going to be any money left over," he confessed.

But this only inflamed the angry subcontractors, who wanted him to promise that once the bank was paid off, he would sell up and hand over the money. He refused to agree to this.

"I'm like every one of you guys. I owe the bank a huge amount of money and they have got me by the short and curlies. But I am also owed a lot by developers and we would not be sitting here if this money had been paid."

The crowd criticised Mr Waller for acting only in the National Bank's interests, saying the company should be liquidated now, a fate which Mr Waller said was inevitable eventually.

Indeed, while they were venting their anger, failed subcontractor Alotech Walls & Ceilings, itself in liquidation claiming $1.3 million from Hartner, was in the High Court at Auckland, winning recognition which will allow it to proceed with a petition to liquidate Hartner.

Those gathered at the Tamaki Yacht Club to hear the latest on the collapsed building empire were given a detailed financial rundown which showed the shortfall of Hartner Construction was $7.3 million.

National Bank is owed $8.5 million, Hartner owes subbies $6.8 milion for work in December and January, and owes $8.5 million under the controversial 'pay if and when paid clause'.

But these liabilities are offset against Hartner's own claims of $13.2 million against developers for work it has done and $2.2 million in company assets. Mr Waller said the claims would be pursued vigorously with litigation and arbitration.

Questions about Hartner Group's other assets were raised at the meeting, particularly its half-share in Excell Corporation, the Hartner corporate box at Eden Park and three Hartner divisions: development arm Hartland Group, Hartner Joinery and Lifestyle Interiors.

"We're not after Wayne's blood," said subbie Steve Healy of D. L. Good plumbers, owed $67,000. "The figures don't look too bad," he said, asking if the wider company assets could be used to repay creditors.

But Mr Waller said that was not his focus, although negotiations were taking place with Excell's other half-owner and a surplus would emerge from Hartner Group.

But right now he was keen to get all construction jobs going again so the cash could flow. He had succeeded with all jobs, except the West Auckland development, Westward, and Shed 21 or the Hilton on Princes Wharf: "We are still in negotiations with the developers on these."

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