Hartner claims still coming in

By ANNE GIBSON property editor

The first report from the liquidator of Hartner Construction reveals that only half the outstanding claims have been lodged, indicating the debt is about to balloon.

A report from Dave Harte, the official assignee and liquidator of Hartner Construction at the Insolvency and Trustee Service, says only 592 claims have been lodged.

But Hartner Construction has 1093 unsecured creditors, so the total amount owed could eventually almost double.

Claims in so far total $19.3 million. "This figure is likely to increase as only 592 claims have been lodged to date," Mr Harte said. "The figure may also be affected by retention-of-title claims."

He indicated that debts could spiral further through disputes over the ownership of goods, and claims by suppliers that since the goods were not paid in full they remained the property of the supplier. Secured creditors are owed $8.24 million.

Mr Harte's report tallies with the initial report from Hartner Construction receiver John Waller - the total owed is $28.7 million, offset by assets of $20 million, leaving an $8.5 million shortfall.

The Insolvency and Trustee Service has called for a meeting of Hartner Construction creditors on May 15 at the Tamaki Yacht Club in Mission Bay.

This is to appoint a liquidation committee and to discuss the appointment of a liquidator other than the official assignee. The meeting will be asked to decide on a proposal to appoint Christchurch accountants David Crichton and Keiran Horne of Crichton Horne and Associates as liquidators. For creditors to vote at the meeting, they must submit a claim form to the Insolvency and Trustee Service in Auckland by the end of next week. Proxy forms and postal voting forms have also been prepared for creditors unable to attend.

Hartner Construction went into receivership on February 1 and liquidation on March 22, with $28.7 million in debts.

Mr Harte summed up what Mr Waller of PricewaterhouseCoopers had done so far this year.

"Previously, the receivers had taken control of the company's assets," Mr Harte said. "Since that time, they have given priority to securing the company's major assets and resolving issues over the work in progress being undertaken by Hartner Construction at the date of receivership. A number of contracts are being completed and a cash surplus from them is expected once all issues have been attended to and the realisation process completed. Any surplus will be applied to reduce the secured debts.

"The receivers are not in a position to quantify the likely amount of the recoveries at this stage."

Hartner Construction is claiming $13.1 million in disputed debts from various parties.