Receivers probe 13 ex-Hawkins companies, call for creditors issued

Botany Downs Secondary College where teachers had to use buckets.

The receivers of 13 businesses previously part of New Zealand's second-largest construction company Hawkins are calling for creditors and say the directors of the businesses are giving their full support in the process.

Andrew Grenfell and Colin McElhinney of McGrathNicol are receivers and managers of Orange H Group - previously known as Hawkins Group - which is now in receivership along with 12 other businesses.

The companies in receivership are Orange H Group, H Construction Group, Orange H Management, H Plant, Orange H Construction, H Construction South Island, H Construction North Island, H Construction North Island Group, H Construction N.I, H Construction Hobsonville, H Infrastructure Holdings, H Infrastructure (NZ) and HUC, Grenfell's letter said.

But it is too early to tell what money is available for or from any of those businesses, the receivers said.

Hawkins was second only to Fletcher Construction in terms of the value of its work load.

The Herald reported this month how Orange H Group was the McConnell entity set up to run down the residual Hawkins assets after the sale to Downer Group.

Orange H was tipped into receivership by its shareholder and creditor just 10 days after being ordered to pay $13.4 million over a leaky school.

Construction company boss John McConnell. Photo/Brett Phibbs

David McConnell of Hawkins said earlier this month that Orange H now owed creditors approximately $30m but had claims outstanding with customers of more than $20m, cash-backed bonds of $14m and further retentions owing.

Last year, the McConnell family sold their long-held interests in the business established by late patriarch Buck McConnell to ASX-listed Downer for nearly $60 million. Last April ASX-listed engineering consultancy Downer EDI bought Hawkins' construction, infrastructure and project management businesses from the McConnell family for A$55.4m ($59.9m).

Companies Office records show Orange H Group's directors are David Arnot Williamson McConnell of Parnell, John Arnot Williamson McConnell of Remuera and Arthur William Young of Birkenhead. David McConnell was David McConnell, managing director of McConnell Group in Auckland and a Hawkins director.

David McConnell, a director of the businesses in receivership.

Grenfell said in a letter this month that the businesses in receivership "were completing legacy building and infrastructure projects not included in the sale of Hawkins Construction to Downer in March, 2017. The receivers are currently reviewing the status of all outstanding projects but understand that the majority are complete with final claims and retentions still to be collected," he said.

"It is not possible to give any indication of the likely outcome of the process. The directors are providing their full support," he wrote.

On May 2, the Herald reported how H Construction North Island was ordered to pay about $13 million for leaky buildings that have troubled an Auckland school for the past eight years. Botany Downs Secondary College, a co-educational school with a roll of nearly 2000, resorted to using buckets in classrooms to deal with the leaks, a court has heard.

The three plaintiffs — the Minister of Education, Secretary for Education and the school's board of trustees — said construction defects caused leaks in nine buildings.

H Construction North Island Ltd, formerly known as Hawkins Construction North Island Ltd (Hawkins), built the buildings between 2003 and 2009.