Update on Mainzeal Property and Construction Limited

11 February 2013

News Release

Update on Mainzeal Property and Construction Limited
and associated entities (In Receivership)

PwC Partners Colin McCloy and David Bridgman as Receivers to Mainzeal Property and Construction Limited and associated entities (In Receivership) have confirmed their current plan of activities for this receivership.

In addition to having regular contact with Mainzeal staff to update them on the progress of the Receivership, the Receivers have been assessing the situation of all Mainzeal sites, and will be endeavouring to talk to all site owners within the coming days.

With the suspension of work on all Mainzeal sites, the Receivers have found it necessary to review the Company's staffing level in order to urgently reduce cash operating costs, and as a result, a number of staff have been made redundant.

Also, since Friday 8 February, the Receivers have been working with all contractors and sub-contractors to give them access to the sites, to ensure all parties involved (from staff to contractors and residents in some cases) are safe and that property that rightfully belongs to contractors can be retrieved in a controlled manner.

“We want to thank all parties involved in this Receivership for their patience, we understand it is a challenging time for everyone. We’re continuing to evaluate individual projects in an effort to restart or transfer work on some sites as soon as possible, subject to contractual arrangements and our statutory obligations as Receivers,” says Mr McCloy.

“We are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment. We understand the importance of a prompt and efficient management of this Receivership and we remain committed to working as quickly as possible through this Receivership,” concludes Mr McCloy.

The Receivers were appointed on Wednesday 6 February 2013 and will provide additional updates when appropriate.

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Notes to editors:
A dedicated page on the PwC website can be found at www.pwc.co.nz/mainzeal.

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