The board of Arrow International (NZ) Limited confirms that the company has today entered Voluntary Administration and has appointed BDO.
The board says, “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. 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-to-day 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.”
Arrow International’s founders Ron Anderson and Bob Foster say, “We started Arrow inDunedin in 1984 and have been very fortunate to work on many significant building projects with great people, friends and work associates. In recent times, the construction industry has become challenging and there is a disproportionate level of risk carried by contractors. “It is the desire of the Directors to work with Voluntary Administrators as it provides Arrow International with the opportunity to minimise disruption, while working to stabilise the business after this unexpected adjudication outcome. Importantly, most of our large projects have been completed or are near completion and wherever possible the project teams will be retained to successfully complete the works.”
All enquiries should be directed to BDO.
BDO appointed joint administrators for Arrow International (NZ) Limited;
Arrow International Group Limited;
Construction Labour and Resources Limited (together “the Companies”)
BDO partners Andrew Bethell, Andrew McKay and Colin Gower have today been appointed joint administrators (“the Administrators”) of the above companies.
The purpose of the VA is to actively engage with Principals, staff and other stakeholders to achieve a result which provides a better outcome for creditors than other formal processes. Construction sites will be closed temporarily while the Administrators assess the position and engage with project Principals to seek a solution that benefits principals, staff, subcontractors and other creditors.
Arrow currently employs approximately 250 staff on projects around New Zealand and the Administrators will be meeting with staff as a priority.
Arrangements will be put in place should subcontractors wish to remove personal items from sites. The Administrators have been advised that retention funds have been set aside in trust as required under the Construction Contracts Amendment Act 2015.
The Administrators will hold a meeting with creditors within eight working days in Auckland, Wellington and Christchurch. Creditors will be advised directly of these meetings, through public notices and on BDO’s website.
The Administrators will focus on their engagement with affected stakeholders and do not intend to make further comment until after the above creditor meetings.
The Administrators’ address is:
Arrow Group of Companies
P O Box 2219
For further information please contact
BDO National Marketing Manager
Direct: +64 9 366 8055
Mobile: +64 21 800 262