Hawkins firms nears end: unsecured creditors get 4c in the dollar
The liquidation of the former Hawkins construction group is nearing its conclusion after nearly a decade, with unsecured creditors receiving only 4 cents on the dollar. The company faced significant financial distress following leaky-building litigation and subsequent restructuring.
Why it matters
The case serves as a significant example of corporate insolvency and the long-term financial impact of construction litigation on creditors.
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The Hawkins construction site at the University of Canterbury, pictured in 2017. Photo / Geoff Sloan
The husk of Hawkins Construction is nearing the end of its administration, with liquidators reporting they will soon wrap up a near-decade of insolvency and liquidation.
Recent liquidators’ reports filed by Grant Thornton for the remnants of the group formerly known as Hawkins flagged their administration would conclude in the next couple of years and stated unsecured creditors owed $122 million had received payments in two tranches totalling $4.8m.
This represents an average payout for unsecured creditors of 4c in the dollar owed.
Hawkins began restructuring in 2012 as it became subject to leaky-building litigation.
The company had grown rapidly since the turn of the millennium, with management claiming it had increased revenue tenfold between 2002 and 2017.
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