Infracon wrap-up ends with debt paid

The liquidation of council-owned roading construction company Infracon has ended, with the millions of dollars of debts the business left on its collapse all paid.

Infracon was placed into liquidation in August 2014 by its two owners, Tararua and Hawke’s Bay district councils, then quickly purchased by Manawatu roading firm Higgins.

The Higgins group has since been sold to Australian-owned company Fletcher Building – for $7 million.

There were 220 staff made redundant in the liquidation of Infracon, with Tararua mayor Roly Ellis previously telling the Manawatu Standard that the majority of workers either retired or found other employment.

Liquidator Tony Pattison of Pricewaterhousecoopers released his final report into Infracon’s affairs in July, which showed the liquidation went well on a financial basis.

The report went over the history of Infracon – a company that operated for more than 20 years doing civil construction, roading maintenance and quarry maintenance in and around the Tararua District – before discussing the liquidation.

Liquidators assessed the business, and closed down the parts found not viable.

The remaining three parts – the Central Hawkes Bay division, and the aggregates and energy divisions – continued to trade before being sold to the Higgins group.

The sale was completed in late2014, but the accounts receivable was not passed on to Higgins as part of the deal, the report said.

Most of that money was passed on to Infracon’s owners prior to the end of the liquidation.

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

The $1.15m in leftover cash was paid to the two councils, the report said.