More than 210 Infracon staff in Dannevirke, Woodville, Hastings, Waipukurau and Palmerston North are facing "uncertain futures".
More than 210 Infracon staff in Dannevirke, Woodville, Hastings, Waipukurau and Palmerston North are facing "uncertain futures".
Infracon staff waiting to hear their fate at a company meeting in Woodville yesterday knew the message wasn't going to be good.
And it certainly wasn't when staff were told liquidators were being called into the roading company which is 66 per cent owned by the Tararua District Council, withthe Central Hawke's Bay District Council owning 34 per cent.
The interim directors of the company, including Tararua District mayor Roly Ellis, made the decision to place the company into liquidation, admitting the more than 210 staff in Dannevirke, Woodville, Hastings, Waipukurau and Palmerston North, were facing "uncertain futures".
"With five years of losses and with the long-term prospects extremely difficult - including continuing losses for the next two years - when we received a letter from the company's bank withdrawing financial support from Infracon, we were left with no alternative," Mr Ellis said.
Peter Wimsett, the Tararua District Council's manager of strategy and district development, confirmed Infracon don't owe any creditors as of Wednesday night.
Mr Ellis said Infracon's directors have spoken to their preferred liquidators and he sees no reason why the 210 staff shouldn't be paid next week.
Mr Wimsett confirmed an investment of $5 million into the company would have been required to save it.
"To restructure Infracon would need a Capex investment of at least $2m and to restructure the staff throughout Infracon would cost another $2.5m and the company would have needed $500,000 in operational cash."
