The directors of York Civil agreed to appoint independent financial advisory and restructure firm Ferrier Hodgson as voluntary administrators, assuming responsibility for the business and its assets.
Administrator Ferrier Hodgson said it was meeting with key stakeholders and clients ahead of a creditors meeting on Thursday, August 16. According to Ferrier Hodgson partner Martin Lewis, the Adelaide-headquartered construction company would continue to work on ongoing projects while the business is reviewed.
“York Civil is an iconic business that undertakes engineering and construction projects for both government and private clients across defence, power, transport, resources, water and marine sectors,” Lewis said.
“Discussions are taking place with key stakeholders, including the company’s clients, ahead of the creditors’ meeting. At this stage, the company will continue to work on the contracts, which are subject to the Administrators’ review.”
State transport and infrastructure minister Stephen Knoll said the state government had met all of its financial obligations to York Civil.
“We’re here to make sure that to the greatest extent possible we can provide for the workers and make sure that taxpayers are protected,” Knoll said.
“The other partners in the Torrens-to-Torrens joint venture and the tram extension would take responsibility for the projects.
“These partner companies were large in size and there was no suggestion they wouldn’t be able to take on the extra burden to complete the projects.
“While the announcement did come as a surprise, there had been some speculation about the company in recent weeks.”
Labor’s transport and infrastructure spokesman Tom Koutsantonis said the state government should immediately announce new infrastructure projects.
“Labor warned there could be a valley of death in the construction industry under a Marshall Liberal government,” Koutsantonis said.
“The Liberals cannot wait until the state budget is handed down. New projects are desperately needed to provide a continuous pipeline of work for the construction industry.”