Failed construction company Ebert placed into liquidation

The failed Ebert, in liquidation now as well as receivership. Photo/Jason Oxenham

Collapsed builder Ebert Construction has now been placed in liquidation, following receivers being appointed in July.

Ebert, which went down working on 15 sites, owes creditors more than $45 million and following a shareholder vote, Grant Thornton partners David Ruscoe and Tim Downes have now been appointed liquidators.

They will investigate the Ebert business to see if there is any money left to pay creditors.

Ebert Construction's first receivership report, out this week, indicated that most of the $24.5m unsecured debts owed to tradespeople and subcontractors might not be repaid. PwC's Lara Bennett, John Fisk and Richard Longman said even those with secured debts might not get any money.

"While it is too early to confirm the extent of potential recoveries from the receivership, the company's accounts and our initial assessments indicate there may be a substantial shortfall to those with secured interests," the receivers said.

Kelvin Eric Hale, Ebert's chief, is claiming $3.5m in the receivership process along with another unnamed shareholder, this week's report said. They had made advances to the company, the receivers said.

Ebert has kept $3.7m of sub-contractor retentions, which will need to be divided up among claimants, depending on what the court decides.

"The receivers are conscious of the importance of this matter. However, until we are able to confirm a pathway and funding for addressing the issues with application of the legislation, we are unable to confirm a timeframe for resolution of this matter," they said in the first receivership report.

Bank of New Zealand is owed $6.1m as a secured creditor at the time of receivership and $640,000 is owed to staff as preferential creditors, with a further $1.3m owed to employees on an unsecured basis.