Six-month battle places Hartner in liquidation

By ANNE GIBSON

Builder Hartner Construction was placed in liquidation yesterday at the request in the High Court at Auckland of three creditors.

The Official Assignee was appointed liquidator, but the three creditors do not expect much of their money back.

Hartner Construction was New Zealand's fourth-largest builder behind Fletcher Construction, Mainzeal and Hawkins.

The creditors making the liquidation application were Alotech Walls & Ceilings, claiming $1.3 million, Consolidated Joinery, claiming $261,000, and Tim Sullivan Ltd (in liquidation), claiming $15,000.

Alotech Walls & Ceilings (in receivership and in liquidation) received recognition last month as a creditor. The application to liquidate Hartner was made jointly by Alotech's receiver, Anthony McCullagh of Horwath Corporate, and Alotech's liquidator, Bernie Montgomerie of Montgomerie and Associates.

The matter, heard before Master Tomas Kennedy-Grant, was unopposed and Hartner was not represented by counsel.

Hartner Construction was placed in receivership on February 1, with John Waller of PricewaterhouseCoopers appointed receiver. He later estimated the debts of Hartner Construction and Hartner Group as $28.5 million.

A creditors meeting of Hartner Construction is expected within a month and a liquidation committee established.

The Official Assignee's office and Mr Waller will establish the number of creditors and the total debt.

Mr Montgomerie said the liquidation move had taken six months because Hartner Construction had initially opposed it. "It has been a long battle."

In late January, Hartner general manager Peter Kay said the legal action was injudicious and his company would produce evidence that Alotech owed it more than $1 million.