Hartner owes creditors $10m

By ANNE GIBSON property editor

Hartner employees and sub-contractors look set to face more layoffs, following a provisional estimate that the failed construction company owes $10 million to its creditors.

The damage is being assessed by Hartner Construction and Hartner Group receiver John Waller, although he has yet to establish a final figure.

Mr Waller said he hoped $10 million was a conservative figure, "but we will have to wait and see."

One of Hartner's largest creditors, the National Bank, is owed $8.1 million.

Hartner claims it lost $7.1 million on two jobs alone: $3.5 million it claims to be owed on stage one of Princes Wharf and $3.6 million it says it lost on the Watermark apartments, now the Sebel Suites of Auckland.

A team of seven from PricewaterhouseCoopers sent out 1031 notices to creditors last week requesting information on claims against the companies, supported by invoices, statements or terms of trade.

Although the two Hartner companies remain in business, the receivers are working closely with the staff they have not already sacked.

On Wednesday, Mr Waller laid off 43 of the 115 Hartner staff.

He is still not sure what will happen to the rest.

The companies had $3 million of assets, including cranes, trucks, cars, building gear and office equipment. The Onehunga headquarters was not included on this list.

Wayne Hartner's Epsom mansion and his $6.5 million launch, Risk & Reward, were both "outside our scope," Mr Waller said.

Although work was due to resume on the Auckland University and Bledisloe building in Parnell, workers are still locked out of the Hilton site at the end of Princes Wharf.

"Everyone is trying to determine the best way to go forward - both the subcontractors and the developer, Kitchener Group," said Mr Waller.

"We don't want to put an impediment on the mid-April opening of the Hilton."

Negotiations are under way to resume Hartner work in Wellington on a Kilbirnie funeral home and Youth Hostel Association building.

Subcontractors were being allowed access to some sites to retrieve their equipment.

Hartner had about 30 projects under way, including about 12 large jobs.

Mr Waller said he was called into Hartner's Onehunga offices just before Christmas but the situation had changed considerably between then and February 1 when Hartner went into receivership.

He said he would issue a report on Hartner this month.