Two companies trading under the “Akron” name, which are responsible for an ACT Government contract for the construction of two new suburbs, have been placed into voluntary administration.
It is understood about 190 staff and over 250 contractors were informed today of the development, with many reportedly owed thousands of dollars for work.
Akron, which is Victoria’s largest civil contractor and designer, has now appointed Taylor Woodings as voluntary administrator, with partner Ross Blakeley saying in a statement that investigations will continue over the next few days.
“Over the coming days, we will conduct an investigation into the financial affairs of the companies. Following this, we will be in a position to determine the best way forward for Akron.”
“We will continue to work closely with the management team to determine the best outcome for all stakeholders.”
The company was founded in the late 1960s, and specialises in earthworks and construction. The majority of its work focuses on roads, pavements, estate, sporting facilities and commercial assets.
Some of its previous major projects include construction of roads at the Commonwealth Games Village, Martha Cove subdivision work and surface work at Flemington Racecourse.
It is understood the first creditors’ meeting will be held next Thursday, February 11.
Taylor Woodings was contacted for comment, but the firm did not return calls before publication. An attempt was made to reach Akron for comment, but the phone lines were diverted to Taylor Woodings.
As reported in the ABC, chief minister Jon Stanhope has said the Government will not repay any of Akron’s debts, but it will review the checks and balances in place for giving out substantially large contracts.
“The Government’s not in the business of simply picking up the debts of companies that go into liquidation or administration,” he told the ABC.
Chief executive John Robertson also said he will work to ensure all subcontractors will be paid, and that no delays should be caused as a result of the action.
“What we have said to the subcontractors from when we first met with them in November is that we would do what we could, our best endeavours to make sure they were paid.”
“I don’t think there will be any substantial delays because either Akron’s contractual obligations will be met or the LDA joint venture at Crace, we will exercise our rights under the contract to then takeover the project and complete the work.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
