The liquidators for the failed Mainzeal group of companies has received $151.3 million in claims from unsecured creditors, and is working its way through the applications as it looks at ways to claw back funds for those people left out of pocket.
BDO’s Brian Mayo-Smith, Andrew Bethell and Stephen Tubbs are sifting through the unsecured creditor claims and considering how best to recover funds, according to their latest report on the failed construction group.
All of the $5.3m owed to employees at Mainzeal Property & Construction has been repaid, while of the $300,000 owed to employees at King Facade, the remaining 30 per cent will be repaid in October.
Inland Revenue has a claim of $2m, the liquidators said.
The Mainzeal liquidators had to contend with court action from the construction group’s principal, Richard Yan, who opposed the inclusion of Richina Global Real Estate (RGRE) and Isola Vineyards to the administration.
In May, the Court of Appeal upheld Mr Yan’s bid to set aside the liquidation of RGRE and exclude Isola Vineyards, saying it was premature to do so before disputed debts were determined.
The liquidators said they are looking at other recovery options open to them as a result of the Appeal Court decision, and had received $290,000 over an RGRE debt. The administration had funds on hand of almost $2.79m as at August 27.
In their April report, the liquidators said they were investigating RGRE’s transactions with related parties and questioned the commercial rationale of related party debt restructures.
In their latest update, the liquidators said they would pursue all recovery options available if they considered there to be a benefit to creditors.
Mainzeal Property & Construction and Mainzeal Living were tipped into receivership on February 6 last year, and 200 Vic joined them on February 13. Liquidators were appointed to the Mainzeal group later that month on Feb. 28.
The receivership of Mainzeal Property & Construction left a surplus of $1.1m for the liquidators of the wider group, who represent unsecured creditors. The receivers were appointed by BNZ, which was owed $11.3m.
Former prime minister Jenny Shipley and former Brierley Investments chief executive Paul Collins resigned as directors of Mainzeal Property & Construction in December 2012, at the request of Mr Yan. They remained directors of Mainzeal Group until just before the MPC receivership.