Infracon sale to Higgins positive, says liquidator

Chief executive of Infracon Darren Mason.

The negotiation of the conditional sale of Infracon is good news, liquidator Tony Pattison says.

Roading company Infracon was put into liquidation by its shareholders, the Tararua District Council and CHB District Council, in August after the company's bank withdrew financial support, following five years of losses, totalling almost $7 million.

More than 90 staff were made redundant, with approximately 100 continuing to be employed by the company as the liquidators worked to find a buyer.

Yesterday, Mr Pattison and fellow Pricewaterhouse Coopers (PwC) liquidator, John Fisk, announced they'd entered into a conditional sale and purchase agreement for the going concern sale of the Infracon business to Higgins Aggregates Limited.

This company is a wholly owned subsidiary of Higgins Group Holdings Limited, which is a large scale civil engineering company with locations throughout New Zealand.

Mr Pattison said he was hoping to reach an unconditional agreement and conclude the sale by the end of November, if not before.

"Throughout the liquidation process both Infracon's aggregate divisions, at Linton in the Manawatu and in Waipukurau have continued to operate, as does the CHB division and we've also been continuing to do a small amount of work for the Tararua District Council," he said.

Approximately 100 Infracon staff continuing to work for the company have been advised of the sale and purchase negotiations and once this goes unconditional they will learn what their future holds, Mr Pattison said.

"Higgins are buying the entire business, with decisions about staff theirs," he said.

Darren Mason, chief executive of Infracon, said his staff welcomed news of the conditional sale.

"We see it as a positive outcome, especially as Infracon and Higgins have enjoyed a good working relationship over the years," he said.

Mr Mason said it has been business as usual at Infracon during the liquidation process with the divisions all performing well over the past few months.

Higgins chief executive David Geor said his company has had a long association with Infracon.

"We're pleased to be the successful bidder for these assets, particularly as the largest part of their activities are based in the area and their people reside within the wider Manawatu/Hawke's Bay communities, who have supported Higgins over the past 50 years," he said.

The sale is good news for creditors of Infracon's creditors too.

"If the sale concludes as expected, secured creditors and all preferential claims will be fully paid," Mr Pattison said.

"We also expect to be in a position to make a distribution to unsecured creditors, however, the quantum and timing of this distribution can only be determined once the sale is finalised."

The going concern sale has only been achievable through the co-operation of all concerned, including management, staff and suppliers, who have continued to support the company during the liquidators trading period, Mr Pattison said.