Adelaide-based construction company York Civil has ceased trading, effective 13 August.
According to administrator Ferrier Hodgson, the decision was made due to insufficient cash resources to continue business operations and the inability to achieve a sale of the business and transition of employees.
Employees and contractors were notified of the closure on Monday morning
The business is involved in a number of continuing projects, including works on major South Australian projects, including the North Terrace Tram Extension, Torrens to Torrens upgrade and Swan River Pedestrian Bridge.
Ferrier Hodgson Partner Martin Lewis said arrangements have been made with the respective joint venture partners on these projects.
Mr Lewis said it is regrettable that the business of York Civil cannot continue to operate.
“We expect any shortfall of employee entitlements will be met through the Fair Entitlements Guarantee Scheme (should the company be placed into liquidation at the second meeting of creditors), however it is too early to form a view on the likelihood of payment to unsecured creditors,” he said.
“It’s our understanding that any Joint Venture projects York Civil is a party to, will be continued by the remaining Joint Venture partners.
A creditors’ meeting, managed by Ferrier Hodgson Partners Martin Lewis and Tim Mableson, has been convened for Thursday 16 August 2018.