‘Million-dollar Mike’ banned
Businessman Mike McDonald had big ideas, but being banned as a company director was not one of them.
The once high–flying mining entrepreneur has been barred from being a director or promoter of any company for four years and six months from June 1.
The ban, published in the NZ Gazette at the weekend, was prompted by a report supplied to the Registrar of Companies by the liquidators of McDonald’s companies, MCAM Limited and MCAM Minerals Limited.
Liquidator Geoff Brown, of Rodgers Reidy, recommended McDonald be prohibited due to his conduct as a director.
The Christchurch-based
40-year-old was declared bankrupt on September 29, 2016.
MCAM, which purported to be an international mining concern, went bust in November 2014, and owes unsecured creditors about
$1 million. MCAM Minerals was put into liquidation in March,
2016, owing $416,000 to unsecured creditors.
McDonald, also known as ‘‘Million-Dollar Mike’’ due to his penchant for doing million-dollar deals, was also linked to Koura Mining Ltd, a West Coast mining company forced into liquidation in 2016, with creditors eventually claiming $850,000. The entrepreneur was listed as the company’s mining manager.
A former mining equipment salesman before starting MCAM in 2007, McDonald had plans to mine for gold at several sites on the West Coast, claiming the digs would create 200 jobs. He entered contracts to buy several farms for their gold potential but sales did not go ahead.
In 2015, he or his related entities were being chased by a British Virgin Islands company trying to recoup a
$900,000 investment and a Perth mining equipment firm that paid
$250,000 up front for machinery it claims it did not receive. He denied liability.
Things once looked very promising for McDonald, a former aviation technician. His company, Mactec Aerospace International, appeared to be going from strength to strength, apparently winning overseas contracts and opening offices around the world.
However, in March 2007, ANZ National Bank called in the receivers who eventually closed the business.
The company had debts exceeding assets of about $4.5m and all unsecured creditors were left out of pocket. Encounters