Mainzeal claims worth $36m rejected
The liquidators of collapsed firm Mainzeal have rejected more than $36 million worth of claims made by out-ofpocket creditors.
About 1400 claims have been made by creditors claiming $157.7m since Mainzeal Property and Construction – the country’s third biggest construction firm at the time – was put into liquidation in 2013.
As at September 23, BDO liquidators Andrew Bethell, Brian Mayo-Smith and Stephen Tubbs said they had ‘‘admitted’’ 1382 of those claims, worth $108.4m in total, and rejected claims worth $36.5m in total.
Three claims totalling $12.8m are still under review.
In the latest liquidators’ report, Bethell, Mayo-Smith and Tubbs said they were continuing legal action against the company’s directors.
The liquidators allege the directors, including former Prime Minister Dame Jenny Shipley, were responsible for allowing the firm to trade recklessly.
They also claim the directors – minus Malaysian director SM Kwan – breached their directors’ duties in relation to a restructure which happened two years prior to the firm’s collapse.
A few days before the collapse, Mainzeal director Richard Yan asked all the other directors to resign, because a related limited partnership, Richina (NZ) LP, would not continue to underpin the company with credit.
Shipley and fellow directors Martinborough-based businessman Sir Paul Collins and Hawkes Bay-based Clive Tilby had already resigned from the property firm, but were still directors of its parent company, Mainzeal Group.
The defence statements filed last year, on behalf of Shipley, Collins, former Mainzeal property chief executive Peter Gomm and Tilby, say that ‘‘at all material times, the ultimate parent company, Richina Pacific, had significant financial resources, backed by assets held directly or indirectly in China’’.
The liquidators said parties were now in the ‘‘discovery phase of the litigation’’.
‘‘The matter is before the court and may take a significant amount of time to reach its conclusion.’’
Preferential creditors had been paid in full, but there were still numerous outstanding payments to its unsecured creditors.
‘‘The liquidators are awaiting thirdparty reports and additional information to resolve outstanding claims.’’
The liquidators have $5.27m to distribute, after receiving surplus funds of $4.2m. They expected some funds would be available to unsecured creditors.