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

 

Mainzeal’s Yan to resist bankruptcy

By Victoria Young

Aug. 16 (BusinessDesk) - Former Mainzeal director Richard Yan says he’ll fight pressure from liquidators at BDO after they moved to make him bankrupt.

On Monday, BDO liquidators Andrew Bethell and Brian Mayo-Smith said they had been forced to apply for bankruptcy to get Yan to pay some $18 million awarded to them by the High Court at Auckland.

Yan is appealing the $36 million awarded against him and three other former Mainzeal directors by Justice Francis Cooke in February this year. The insurers for Jenny Shipley, Clive Tilby and Peter Gomm, who were also held liable, have already provided security for their half of the $36 million.

On Aug. 8, associate judge Hannah Sargisson gave permission for BDO to serve a bankruptcy notice outside New Zealand.

The associate judge set a deadline of 25 days to comply with the demand or file an application to set aside the notice. Her minute says Yan’s lawyers have already indicated they will do the latter.

The High Court at Auckland said it was appropriate to chase Yan outside New Zealand because the debt owed to the liquidators had a “real and substantial connection with New Zealand”.

In her minute, the judge noted that Yan’s lawyers were protesting jurisdiction on his behalf.

In a statement through his lawyers, Yan said in any event he has offered undertakings to address concerns that he might not be able to pay - but did not elaborate on what those undertakings were.

“Mr Yan intends to resist the use of bankruptcy procedures to place pressure on him while his appeal is pending,” the statement from Tim Mullins, a partner at LeeSalmonLong, said.

“As everyone is aware, the judgment is subject to appeal. Mr Yan has pursued his appeal diligently. Mr Yan does not accept the plaintiffs will suffer any prejudice from awaiting the outcome of the appeal.”

Mullins said that he could not provide further comment at this stage.

Property records indicate that in Auckland Yan part-owns Remuera property with a ratings value of more than $10 million and an Epsom home valued at $4 million. He is also the sole shareholder of a company which owns Campbell Park, a 32-hectare estate near Oamaru.

The next stage, which includes a cross-appeal by the liquidators, is expected to be heard in the Court of Appeal early next year.

The director defendants deny liability, while the liquidators say the amount to pay in damages should be higher.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO:

Māui And Hector’s Dolphins: WWF/Industry Counter Offer On Threat Management Plan

Forest & Bird says WWF-NZ's plan for protecting Māui dolphins is based on testing unproven methods on a species that is almost extinct, and is urging the Government to reject the proposal. More>>

ALSO:

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO: