Liquidators appointed to Mainzeal group

Liquidators appointed to Mainzeal group

March 1 (BusinessDesk) - Liquidators have been appointed to the commercial construction sector player Mainzeal Group, less than a month after one of its primary trading arms, Mainzeal Property and Construction, was placed in receivership.

Auckland-based BDO liquidators Andrew Bethell, Brian Mayo-Smith, and a Christchurch colleague, Stephen Tubbs, were appointed liquidators for Mainzeal Group and 11 other related companies.

The trio had already been appointed liquidators of King Façade, a subsidiary company that is believed to be at the heart of cashflow and supply chain difficulties that have felled one of New Zealand's best-known construction sector brands.

The entities in receivership are: Mainzeal Group, Mainzeal Property and Construction (in receivership), Mainzeal Livng (in receivership), 200 Vic (in receivership), Building Futures Group Holdings, Building Futures Group, Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal Construction SI, MPC NZ, and RGRE.

A statement from the liquidators identified the companies as having "common shareholders and in some cases shareholders" to King Façade, which the liquidators' initial report showed had racked up close to $20 million in losses, which Mainzeal had been carrying.

"The rationale for the appointment includes the efficiency benefits of having the same liquidators across all group companies (given the complex inter-company positions) and the liquidators having some different investigating powers to those available to the receivers."

The liquidators are planning a creditors' meeting and are meeting with the Mainzeal receivers over coming days.

Former Prime Minister Dame Jenny Shipley and former Brierley Investments chief executive Paul Collins resigned as directors of Mainzeal Property and Construction in December, at the request of Mainzeal and Richina group principal Richard Yan, an Auckland-based businessman, but remained directors of Mainzeal Group until just before the Feb. 6 MPC receivership.

(BusinessDesk)

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