By ANNE GIBSON property editor
Desperate creditors of Hartner Construction, owed millions of dollars by the failed builder, rallied in Auckland yesterday to repeat their demand for Government intervention.
The company was tipped into receivership by the National Bank this month and the subcontractors fear their interests will be placed at the
back of the queue by receiver John Waller.
About 70 subcontractors and construction industry suppliers at the meeting urged Commerce Minister Paul Swain to appoint a statutory manager to the company. They say a statutory manager would have wider powers of investigation than Mr Waller and could dispose of Hartner Group assets to maximise returns for unsecured creditors.
The subbies' pleas have so far been rejected by Mr Swain. However, Building Subcontractors Federation executive officer Peter Degerholm said he hoped the sheer number of creditors signing a petition would persuade Mr Swain to reconsider.
It was not just about Hartner, Mr Degerholm said. There was something fundamentally wrong in the industry that must be investigated - the sooner the better.
Mr Waller, of PricewaterhouseCoopers, strongly opposes Government intervention. He made his views clear to Mr Swain and Associate Commerce Minister Laila Harre at a meeting in Wellington on Monday.
Appointing a statutory manager would be appropriate only if reckless or fraudulent trading was proved, or if it was necessary to protect the public, Mr Waller says.
Yesterday's meeting voted in a subcommittee, headed by Mr Degerholm, to liaise with the receiver.
The subcommittee hopes to gain access to Mr Waller's list of Hartner creditors to get a more accurate estimate of how much the company owes subbies and suppliers.
The subbies also agreed to join Alotech Walls & Ceilings in its liquidation move against Hartner.
Alotech, itself in liquidation claiming $1.5 million from Hartner, last week won High Court recognition as a creditor, allowing it to apply to have Hartner Construction placed in liquidation.
However, it is likely there is not enough cash in the Hartner pot to pay a liquidator, which reinforces the case for appointing a statutory manager, say those at the meeting.
Herald Online feature: Hartner receivership
