Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Former Independent Directors of Mainzeal Group Ltd Comment

Media Statement

06/02/13

Former Independent directors of Mainzeal Group Ltd comment

Today the Bank of New Zealand appointed receivers to Mainzeal Property and Construction Ltd (MP&CL) and Mainzeal Living Ltd (MLL).

Mainzeal Group Ltd was not put into receivership.

However the independent Chair of MGL, Dame Jenny Shipley confirmed that, as of midday February 5th 2013, 4 directors resigned as members of the board of Mainzeal Group Limited. We did so because we did not have sufficient confidence in our ability to continue to perform our duties as independent directors, as the undertakings given and the basis on which we had undertaken serve as Directors had changed and so we had no option but to tender our resignations.”

At this time these Director were not directors of Mainzeal Property and Construction Ltd. The three directors resigned the board of Mainzeal Property and Construction Ltd – the company in receivership - in December 2012, at the shareholder’s request. At that time MP&CL was meeting its obligations as they fell due and had facilities with its bankers that enabled it to continue to operate. We agreed to accept the role of Directors of Mainzeal Group Ltd based on the undertakings and assurances given by the shareholder at that time. Sadly these have now changed which have led to our resignations.

That company had passed through a very difficult year in the construction sector, the impact of Legacy issues around leaky buildings, a large contract with disputed payments and a Chinese supply chain scheduling and delivery challenge.

The 4 Directors resigned the Mainzeal Group board on Tuesday when it became apparent financial undertakings from its shareholder, Richina Pacific, for Mainzeal Property and Construction were no longer in place and the further equity commitments were uncertain or conditional.

As a result the working capital facility with the BNZ was withdrawn and despite intensive negotiations between the shareholder, the parent company Richina Pacific, the directors of MGL on behalf of MP&C and the bank, a solution was not possible and the BNZ has appointed receivers.

All former directors say, “As independent directors of MGL, the holding company, we have done everything we could to try and avoid this painful outcome. We are fully aware and very saddened by the subsequent impacts the receivership may have on Mainzeal employees, creditors, subcontractors and others.”

“It is deeply disappointing that we were unable to secure the support that would have allowed Mainzeal to continue to operate,” say the directors. “Mainzeal Property and Construction was a very good company, had a significant workload of building in Christchurch and if we had managed to gain the undertakings necessary, it was working toward a positive cash flow and profitability in 2013.”

Peter Gomm has also resigned the boards of Mainzeal Group ltd and Mainzeal Property and Construction but will remain as CEO.

Dame Jenny Shipley
Paul Collins
Clive Tilby

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news