Chows eye Arrow projects

Stonewood Group co-owner Michael Chow says he has already contacted the administrators appointed to major construction firm Arrow International (NZ).

Chow said his company had the capital and staff to complete a hotel being built by Arrow for his group in Vivian St, Wellington. He and his brother John were keen on other Arrow projects.

The hotel was 70 per cent complete, and Chow said work could restart in a day or two. Earlier this month, Stonewood bought RCR Infrastructure from voluntary administration, and Stonewood Group two years ago.

Arrow’s voluntary administration has left the industry shocked, after a court decision over a leaky building left it running short of cash.

Arrow International was founded in Dunedin in 1984 by Ron Anderson and Bob Foster but had grown to have about 250 staff, with major projects across New Zealand.

Rumours about Arrow’s financial position have been circulating for weeks and yesterday the company confirmed it was seeking to appoint voluntary receivers as it admitted it had major cashflow issues.

The board said an unspecified adjudication had left the company in a position where it had to cease trading.

‘‘This is not the outcome we wanted or expected but in light of a recent adjudicator’s decision, we had no choice but to take this course of action,’’ the company said in a statement.

‘‘We were greatly surprised by the adjudication in favour of another contractor in a disputed Auckland project, and the financial obligation attached to the decision left Arrow with insufficient cashflow to meet its day-today operating costs.

‘‘We have managed the tough trading conditions which have stressed the entire sector but this unexpected result has affected solvency to the point that we could not sustain trading as we have been.’’

BDO partners Andrew Bethell, Andrew McKay and Colin Gower have been confirmed as Arrow’s administrators and said they would be meeting with staff as a priority.

Arrow’s construction sites would be closed temporarily

while the administrators assessed the position.

Creditors’ meetings will be held in Auckland, Wellington and Christchurch within eight working days.

BDO confirmed sub-contractors’ retention funds had been set aside, as required under recently revised construction contracts legislation.

In Wellington and Christchurch, sub-contractors were seen removing their tools from Arrow sites in case the sites were locked down.

Outside a job site on Wellington’s Courtenay Place and Taranaki St, a contractor – who declined to be named – was loading a $4000 piece of equipment into his van.

‘‘It’s only talk but they’d never tell you [when it happens]. We’ve all been caught out too many times.’’

At another site on Dixon St, one contractor said he was under the impression that the project could be shut down for several days while the administration process was conducted.

Sub-contractors and directly employed labourers also downed tools at 100 Langdon’s Rd, in Papanui Christchurch, where Arrow was project managing a new Rebel Sports building.

Arrow’s directors said in a statement that they wanted to work with administrators in a bid to minimise disruption.

In Wellington, Arrow has been the lead contractor on a 113 dualkey apartment block for Vicinity in Dixon St.

Vicinity director Mike Cole said people had not been asked to leave the site and he was ‘‘100 per cent confident’’ his project would be completed.

Arrow recently finished the Rydges Hotel at Wellington Airport, and a $30m heritage refurbishment at the Xero Two building on the city’s waterfront.