Stockbroking | Wealth Management | Corporate Advice

x

Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

York Civil to stop trading immediately

A South Australian construction company involved in major infrastructure projects around Australia has collapsed with the potential loss of almost 200 jobs.

York Civil recently went into voluntary administration but, with insufficient cash resources and no buyer on the horizon, has been forced to cease trading immediately.

Employees and contractors were informed of the decision on Monday morning and may be forced to rely on a federal government scheme to guarantee their entitlements.

Administrator Mark Lewis said it was regrettable that York Civil could not continue to operate and Premier Steven Marshall described it as sombre news for the people of South Australia.

"A very sad day for York Civil, for their directors, shareholders, employees, families, their subcontractors and their employees and families," Mr Marshall said.

"It's a very sad day for South Australia."

Mr Lewis said it was too early to determine the level of payments to unsecured creditors, with a meeting to be held on Thursday.

But the state government said York Civil had committed to paying all subcontractors in full.

York Civil has been involved with the delay-plagued but almost complete North Terrace tram extension and the Torrens to Torrens section of the $800 million upgrade to Adelaide's South Road corridor.

It has also worked on a number of projects in Western Australia, including the Perth Stadium footbridge and with major roadworks surrounding Sydney's new Northern Beaches Hospital as well as upgrades on the Pacific and Princes highways in NSW and Queensland.

Arrangements had already been put in place for the remaining partners in any joint venture projects to continue the work and Mr Lewis said this would apply to the Torrens to Torrens development, the Adelaide tramline and the Perth Stadium footbridge

According to its website York Civil was founded in 1990 and employs more than 400 people.

But only about 190 were thought to remain, with almost 140 of those in SA.

Mr Marshall said it was hoped some people would transition quickly to other work, possibly with the joint venture companies, but said business failures occurred from time to time.

"It's regrettable when it does occur but it is not the responsibility of the taxpayers of South Australia to underwrite all business risk in this state," he said.

"What a government needs to be doing is work on improving the conditions so that we minimise any business failure."

Opposition infrastructure spokesman Tom Koutsantonis said the government must offer support to those workers who lose their jobs including career and financial advice and access to training.

Mr Koustantonis said more than 130 South Australian workers were "going home to their families tonight not knowing where their next pay cheque will come from".

Austrlaian Associated PressBack to Breaking News

Market Indices