Construction firm to be wound up
Paterson Contracting has shut its doors and is set to be wound up after falling more than $1 million in debt.
The company had struggled due to the slowdown of the construction industry and has already laid off all of its staff.
According to a notice published on Wednesday, a petition to wind up the business was put before the Supreme Court by Biermans Concrete Products Ltd on October 31.
The petition is set to be heard by the court on December 7, with other creditors expected to come forward.
Patersons lawyer Alan Dunch said there is no intention to fight the order.
The reality is that Paterson recognised that it had reached the point of being insolvent some weeks ago and as a result of that, it ceased trading, Mr Dunch said. There is no possibility of it at all being able to satisfy the outstanding debts.
Mr Dunch was unable to state exactly how far in debt the company was, but described it as well in excess of $1 million.
Ten of Patersons 35 staff were let go in January, 2010.
Owner Kevin Petty, former owner of Newstead Belmont Hills, then said that the layoffs were temporary, caused by the sluggish construction industry.
The remaining staff were let go over the course of this year, with Mr Petty citing a lack of work.
Universal Electric filed a writ against the company in April. In September another pair of writs were filed against the company by sheet metal company Keen Ltd and Air Care Ltd.
Cricketers involved in gun chase
They owe you $35m
Drug smuggler sent to jail
Quango boss handed airport deal
Bermuda features in Samsung commercial
Planned new work permit regulations unveiled
Take Our Poll