AL Civil Ltd was incorporated on 22 November 1989 and as such had history. It had developed a relationship with the Ministry of Education and was in the process of completing six different contracts on schools around Auckland.
The current owners of AL Civil bought the business in 2004. They advised that the failure of the business was due to a Quantity Surveyor under-quoting contracts which led to losses and flow-on effects, and cash-flow constraints.
Litigation against Ministry of Education
On 28 March 2018 the Liquidator, on behalf of AL Civil, filed proceedings against the Ministry of Education, through Auckland Girls Grammar School Board of Trustees, Takapuna Grammar School Board of Trustees, Glenfield Intermediate Board of Trustees, and Avondale College Board of Trustees.
This litigation ran for several years and ended up with a substantial settlement with the Ministry of Education. A distribution was made to unsecured creditors late last-year.
The case highlighted the importance of perseverance in company liquidations to secure the best possible result for creditors. In this case they were substantial (around $4 million) and the feedback we received from the creditors (through their committee) was incredibly positive.
*not its actual name