Failed Construction Company Calls in PwC Administrators
A construction company in Northern Ireland has turned to PricewaterhouseCoopers administrators after the firm went insolvent.
Carvill Group, one of the leading construction companies in the region, announced that three of its companies would be placed into receivership.
PwC administrators are currently assigned only to a holding company of Carvill Group while they are still in talks with the directors according to a spokesperson, vowing to issue further statements in due course.
The announcement came after the construction company‘s management failed to reach a company voluntary arrangement with its lenders after four months of negotiation.
A spokesperson for the construction company said the group tried to reach proposals for a company voluntary arrangement with creditors. But due to the tough economic conditions that depressed sales in the construction market, and due to other external threats, the firm was left with no other option but to call in the administrators.
Carvill Group has residential and commercial developments in Northern Ireland, Scotland, the north of England and Germany.
Christopher Carvill, managing director of the construction company, said he hoped to see the current projects in hand to be developed during the course of the administration process.
“This should ensure that current employment levels will be maintained,” he said. It is still unknown how many jobs will be affected by the administration.
But he added that the decision still lies in the hands of the appointed administrators.
The administration will cover the Carvill Group, Carvill Scotland and Carvill Newcastle according to Carvill. However, no administrator has been appointed yet to Carvill Scotland and Carvill Newcastle.
The construction company bought the former air conditioning plant Sirocco Works in 2006 for £40 million from William Ewart Properties. The deal was considered as a record price for a development site.
The acquisition was believed to have contributed to the collapse of the group when values of land dramatically dropped one year later.
Between 2007 and 2008, the value of landbank, which the construction company tried to build up for future developments, fell from £175.3 million to £127.3 million, adding to the group’s trouble.