Bracknell Corp., Minneapolis, has fallen on hard times.
The electrical-contractor consolidator ranked fifth on CEE News' 2001 list of the Top 50 electrical contractors with revenues of $632.8 million. In the past year, however, Bracknell's stock price plummeted from a 52-week-high of $5.50 to 12 cents on the NASDAQ, which halted trading on Bracknell's stock on Nov. 2. The Ontario Securities Commission also issued a cease-trading order on March 22 and April 3 after Bracknell failed to file an annual financial statement as required by securities law.
Adesta Communications Inc., a nationwide developer of fiber-optic based communication networks and a wholly-owned subsidiary of Bracknell, filed for Chapter 11 on Nov. 2. Bracknell made a significant investment in the telecommunications market to build national-and-city scale telecom networks with the intent of leasing them to carriers. When the telecom market collapsed, however, Bracknell was left with million-dollar debts from defunct providers and unfinished networks.
Bracknell's financial woes can also be linked to a Detroit airport construction job. According to a report on www.sedar.com, delays and design changes caused the $1.2 billion terminal to be plagued by cost overruns. The extra costs worsened the problems with creditors and by the end of July, Bracknell had $350 million in debt with $25 million due by the end of 2001.