“Price escalations made a number of projects uneconomic quite quickly,” the report states.
“There have been a number of issues with projects over the last few years which have had a large impact on working capital.”
Legal action is also under way by a former customer over costs related to an incomplete build.
According to the report, Shape Construction owes $530,000 to preferential creditors, including $500,000 to Inland Revenue and $30,000 in staff wages and holiday pay. Unsecured creditors are owed another $500,000.
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The company has just $25,000 in assets available for distribution, leaving a shortfall of just over $1m.
Creditors include Auckland Council, Central Otago District Council, ACC, Inland…
