Infracon settles all debts in liquidation process

Infracon had operated for more than 20 years carrying out road infrastructure work and maintenance before the liquidation.

Millions of dollars owed by liquidated construction company Infracon have all been paid.

Infracon, owned by Tararua District Council and Central Hawke's Bay District Council, was put into liquidation in August 2014 and at the time 220 staff were made redundant, with most either retiring or later finding other work.

Liquidator Tony Pattison of PricewaterhouseCoopers has released his final report, showing the process went well financially.

While the liquidators closed parts of the company not viable, the Central Hawke's Bay division and the aggregates and energy divisions continued to trade before being sold to Higgins.

The sale of the company was completed in two parts, with the majority of the business and assets passing to Higgins in November 2014 and the business and assets of the Linton quarry following in December.

Tararua District Council owned 66 per cent of Infracon, with Central Hawke's Bay District Council owning the balance.

Infracon had operated for more than 20 years carrying out road infrastructure work and maintenance before the liquidation.

The liquidator's report said all debts had been paid, with employees receiving $3 million, Inland Revenue $489,000 and unsecured creditors $1.2 million plus interest.

The $1.15 million in leftover cash was paid to the Tararua and Central Hawke's Bay councils, with TDC receiving $671,850.99 in cash and assets valued at $56,135.76.

After the liquidation of Infracon, the Tararua District Council joined Downers in a roading alliance, which operates as Tararua Alliance.