Debt-ridden contractor Paul Y involved in 13 Hong Kong public works projects
Twelve of the firm’s 13 contracts are joint ventures with other construction firms, government says
Thirteen public works projects will be affected by the looming liquidation of one of Hong Kong’s largest construction firms, Paul Y Engineering Group, authorities have revealed, while saying the impact is manageable.
The government said on Friday that it was prepared for the failure of the group, which had recently applied to the court to appoint provisional liquidators for five of its subsidiaries to address debt issues and formulate a restructuring plan.
Christopher So Man-chun and Victor Jong Yat-kit, both with PwC, were on Friday appointed as joint provisional liquidators of the five companies. The firms are principal subsidiaries – Paul Y Construction Co, Paul Y General Contractors, Paul Y Builders, Paul Y Contractors and Paul Y Construction Engineering.
The government said 12 of the company’s existing 13 public works contracts were joint ventures with other construction firms.
The 13 contracts include two projects related to the development of the Lok Ma Chau Loop, an area near the border with mainland China earmarked for a hi-tech zone.
The two projects are managed by the Civil Engineering and Development Department and include direct road links and site formation work.