Mainzeal Group liquidation: latest six-month report shows $ 111 million claims “recognized”

According to the latest six-month liquidation report released yesterday, a $ 111 million claim against the failed builder Mainzeal Group and its many allies is “recognized”.

Andrew Bethel and Andrew McKay of BDO Auckland are
liquidators. They received $ 158 million.

But not all claims will be recognized, they said.

Mainzeal Property and Construction, Mainzeal Living, 200 Vic, Mainzeal Group, Building Futures Group Holdings, Building Futures Group, Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal Construction SI, MPC NZ and RGRE are in liquidation.

The three were previously appointed to the King Facade and referred to this in their summary of claims that are recognized or resolved as valid.

“Of the approximately 1,400 claims totaling $ 158.3 million received from the company’s creditors and King Facade, a total of 1,390 claims have been recognized in whole or in part totaling $ 111 million,” the liquidators said on August 28, 2021-February. 28, 2022, six-month report.

“We expect some funds to be available for distribution among unsecured creditors.”

The report also summarizes recent lawsuits.

“[Directors] Richard Ian, Lady Jennifer Shipley, Peter Gom and Clive Tilby were held jointly and severally liable by the High Court for reckless trading and were ordered to pay $ 36 million, with Mr. Ian responsible for only $ 18 million and Lady Jennifer Shipley and Mr. Tilby and Mr. were responsible for $ 6 million each together with Mr. Jan, “- said in a report yesterday.

Sir Paul Collins was found not guilty, the liquidators said.

Ian and other directors separately appealed the High Court decision, and the MPCL and liquidators filed a cross-appeal. Appeals and reciprocal appeals were considered in the last week of July 2020, and the Court of Appeals issued its decision in March 2021, the report said.

In its decision, the Court of Appeal found that the directors had violated their duties under sections 135 and 136 of the Companies Act.

But the court found that compensation for violating s135 from the directors was not collected.

Directors have been held accountable under S136 for all obligations to principals, bond suppliers who paid compensation to these principals and subcontractors for four significant construction contracts entered into by Mainzeal after 31 January 2011, and all obligations incurred by Mainzeal before creditors from July 5, 2012 onwards plus interest and expenses, the liquidators noted.

The Court of Appeal returned the case to the High Court to determine the extent of the directors’ liability.

“The liquidators believe that the losses to creditors, calculated in accordance with the decision of the Court of Appeal, are likely to significantly increase the responsibility of directors. As reported in our previous report, the Supreme Court allowed directors to appeal and liquidators to appeal the decision.

“In this connection, the High Court has adjourned until the complaints are resolved. Appeals were heard in court from 7 to 11 March 2022.

Now the court has left its decision, BDO liquidators said yesterday.

The liquidators cannot say when all the enterprises will be finished.

In the schedule of receipts and payments, they have funds in the amount of 5.3 million dollars, but for six months paid 281,000 dollars, of which 194,000 dollars were legal fees.

The amount of remuneration and payments of liquidators for six months to the end of February this year amounted to 52 thousand dollars.