The major government contractor announced the decision to employees and contractors through the company’s administrator, Ferrier Hodgson, on Monday morning.
It said the decision was made to cease trading as no buyer had been found to take over the business and its employeess – 136 in Adelaide, 31 in NSW, 18 in WA, and three in Queensland.
The administrator added that there were insufficient cash resources to continue York Civil’s operations. However, it said it expected any shortfall in employee entitlements to be met through the federal government’s Fair Entitlements Guarantee Scheme.
“It’s our understanding that any joint venture projects York Civil is a party to, will be continued by the remaining joint venture partners,” Ferrier Hodgson partner Martin Lewis told ABC News.
“Arrangements have been made with the respective joint venture partners for a continuation of works on the North Terrace tram extension, Torrens to Torrens upgrade and Swan River pedestrian bridge.”
A creditors’ meeting will be held on Thursday, August 16, but Ferrier Hodgson said it is too soon to tell if unsecured creditors will be paid.