The receivers for failed construction firm Mainzeal Property and Construction have raised some $22.5 million in asset sales and recoveries from outstanding contracts, and are confident there will be some money left over for the liquidator to mop up.
PwC’s David Bridgman and Colin McCloy expect to have surplus funds for the liquidators once they’ve finished managing the receivership of the Mainzeal companies they are overseeing, according to their first six-monthly report.
Of the $111.4m in known assets identified, the pair have recovered $9.4m from contract receivables, $4.6m from selling construction assets, and $9.7m from property sales, as at August 5.
Between February 6 and August 5 the receivers made payments of $18.6m, including a $4.9m payment to the secured creditor, $5.3m in contract expenses to complete work, $2.4m for staff and $2.4m in receivers’ fees. That left net funds of almost $3.9m at the end of the period.
With the sale of Mainzeal’s former headquarters owned by related party 200 Vic Ltd likely to cover secured creditor Bank of New Zealand, Messrs Bridgman and McCloy say it is “likely that upon the retirement the receivers will be able to provide the liquidators with a surplus from net realisations”.
The liquidators represent unsecured creditors owed some $106.3m, whereas the receivers were appointed by BNZ who was owed $11.3m.
Preferential creditors, including staff entitlements and outstanding tax, are owed about $5.3m.
The receivers are working with liquidators Brian Mayo-Smith, Andrew Bethell and Stephen Tubbs of BDO in pursuing some $46.6m in related party debt, which stemmed from two significant restructures in the two years leading up to the group’s collapse.
In the liquidators’ latest update last month, they said the quantum of any distribution to unsecured creditors will depend on the pursuit of the related party debts, and if unsuccessful, any return “is not likely to be substantial.”
Mainzeal Property and Construction and Mainzeal Living were tipped into receivership on February 6 and 200 Vic joined them on February 13.