Building link in IBS liquidation

By ANNE GIBSON

One of the largest wall and ceiling fitting firms has gone under in a move which is being partly attributed to the $20 million failure of builder Goodall ABL.

International Building Systems has gone into liquidation, and construction industry arbitrator Geoff Bayley says Auckland is now seeing the second and third tiers of the industry fall apart in a domino effect.

Company records show IBS is owed $1.2 million by Goodall ABL and $380,000 by Hartner Group, according to one of the joint liquidators, Stephen Lawrence of Ferrier Hodgson.

"But we are uncertain whether Hartner and Goodall ABL owe the company we are liquidating, or whether it's owed to one of the associated IBS companies," Mr Lawrence said yesterday.

The IBS failure comes after another major ceiling and wallboard company, Alotech, folded in June last year.

Alotech owes 55 creditors $2.9 million and is being liquidated by Montgomerie & Associates. It, too, is claiming $1.3 million from Hartner, although Hartner says Alotech owes it $1 million.

Goodall ABL went under in March last year, with $20 million owed to about 400 subcontractors and suppliers.

It is being liquidated by Rod Pardington of Deloitte Touche Tohmatsu.

Brendon Gibson and Stephen Lawrence of Ferrier Hodgson have been appointed joint liquidators of IBS and issued an initial report to creditors dated January 19, revealing that 104 unsecured creditors were owed about $796,000.

Creditors will not get any more than 20 cents for every dollar owed, they predicted, dispensing with any meeting.

"We are advised by the company that approximately $49,000 of that total amount has been disputed. We are advised that approximately $263,000 is owed to the Department of Inland Revenue, a substantial portion of which will be preferential.

"IBS Group, the company's parent, is owed approximately $1 million, which is secured by way of a registered debenture," the liquidators said.

IBS went into liquidation on January 17. It had an annual turnover of about $6 million and employed up to 400 workers at one time, an industry expert said. Its jobs included the Watermark Plaza development in the Viaduct Harbour.

The liquidators were unable to specify the IBS jobs, as they said they were only in the initial stages of investigation.

However, Mr Lawrence said IBS did not employ anyone at the time it went into liquidation but that it had worked on various jobs around the Viaduct Harbour.

IBS director Phillip Ellis supplied the liquidators with all the books and records which showed the only asset available to the liquidator was one small book debt of about $5000.

Building companies to fold recently are:

* Goodall ABL of Auckland went into liquidation in March last year, owing 400 subbies and suppliers $20 million.

* Alotech Walls & Ceilings of Mt Eden went into liquidation in June last year, owing 55 creditors $2.9 million.

* Construction Mechanics of New Plymouth went into liquidation last year, owing between 200 and 300 creditors $2.5 million.

* Campbell Construction of Takapuna went into liquidation around Christmas, owing 130 subbies and suppliers just under $1 million.

* GFF (formerly Equinox Construction) of Princes Wharf in Auckland went into liquidation around Christmas, owing 250 creditors $3.1 million.

* Tauran Construction of Fort St in Auckland went into liquidation around Christmas, owing 1000 creditors $2.1 million.

* International Buildings System of Albany went into liquidation on January 17, owing 104 creditors $769,000.