A South Australian construction company involved in major infrastructure projects around Australia will stop trading immediately.
York Civil recently went into voluntary administration but because of insufficient cash resources and the inability to secure its sale, the company has ceased operating, administrator Martin Lewis said on Monday.
Employees and contractors were informed of the decision on Monday morning with any shortfall in entitlements to be met through the Fair Entitlements Guarantee Scheme should the company be placed in liquidation.
It was too early to determine the level of payments to unsecured creditors, Mr Lewis said, with a meeting to be held on Thursday.
York Civil has been involved with the delay-plagued but almost complete North Terrace tram extension and the Torrens to Torrens section of the $800 million upgrade to Adelaide’s South Road corridor.
It has also worked on a number of projects in Western Australia, including the Perth Stadium footbridge.
It is also involved in the major roadworks surrounding Sydney’s new Northern Beaches Hospital as well as upgrades on the Pacific and Princes highways in NSW and Queensland,
Mr Lewis said it was his understanding that any joint venture projects involving York Civil would be continued by the remaining partners.
“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,” he said.
Last week the state government said it was investigating if subcontractors working on York Civil’s Adelaide projects had been paid.
According to its website the company was founded in 1990 and employs more than 400 people.
Premier Steven Marshall said the government wanted to make sure the proper arrangements had been put in place to pay what was owed.
“I just think we need to be assured as taxpayers that when our money has been paid it has ended up where it has actually been required,” the premier said.
“I’m sure that our money has been paid.
“But there are protocols in place when governments pay accounts that subcontractors are paid.”