The Cairns Post - CEC projects unlikely to be finished

16 May 2011

The Cairns Post

CEC projects unlikely to be finished

ROAD projects that were being undertaken by collapsed CEC Constructions are unlikely to be completed by the receivers, dashing the hopes of employees for some work while they look for new jobs.

Receivers Chris Honey and Keith Crawford from McGrathNicol are scheduled to hold a meeting in the next day or so with the Department of Main Roads and Transport to see if there is any possibility of reaching an agreement to finish the jobs.

CEC was working on three projects worth several million dollars at Mourilyan, south of Innisfail, and on Cape York.

In a statement, the receivers said they had completed a review of existing projects and had concluded that the "overall economics and risk profile" associated with the remaining projects were not worthy of completion by them.

They said they had advised the DTMR and planned to meet soon to discuss the work.

"If these issues cannot be satisfactorily resolved the receivers and managers will not be in a position to resume construction activity," the receivers said.

The receivers said the employees of CEC Construction were stood down by the company on May 6 after the appointment of voluntary administrators.

They said further updates would be provided on the websites of the Australian Securities Exchange, McGrathNicol and CEC.

Administrators SV Partners Brisbane have scheduled a meeting with creditors, including employees, at Brothers Leagues Club on Wednesday at 11am.

A worker, who asked not to be named, said that was the only communication they had received since they were stood down on Friday last week.

"We’ve been kept in the dark," he said.

"We are hoping that at the meeting we will have a clearer picture of our future."

The first meeting of creditors, owed an estimated $46 million, will discuss the level of debt and the administration process involving CEC Constructions, the group’s main trading business.

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