Mainzeal liquidators' court action still at pre-hearing stage
Mainzeal creditors remain at least $112 million out of pocket as the liquidators wait for a date in court over the building company's collapse.
Mainzeal was one of the country's biggest construction firms before it collapsed in 2013, initially owing unsecured creditors an estimated $138 million.
A six monthly creditors update by liquidators BDO says it has received 1400 claims totalling $157.7m, and 1383 had been admitted in full or part totalling $112.3m.
Another $37.7m worth of claims had been rejected, and two claims worth a total of $7.7m remained under review.
"We expect that this process will be completed shortly," liquidator Andrew Bethell said.
BDO has secured third-party funding to pursue court action against Mainzeal's directors and former directors, but Bethell said but this was still in the discovery phase of the court system. A timetable leading to a hearing date had not yet been set.
A civil suit worth $47.4m was lodged in 2015 against Mainzeal's current sole director Richard Yan and former directors including former Prime Minister Jenny Shipley.
The claims included reckless trading, claims against related parties, and breaching directors' duties in relation to inter-group business restructures in the two years prior to liquidation.
Shipley and others have said they would fight the allegations.
Bethell said there was some of the outstanding money in theory available to unsecured creditors but it hinged on the recovery actions of the liquidators, the companies and subsidiary KFL.
A distribution prior to the completion of legal action would be considered when the receivership and claim assessment processes had been finished.
Currently there was $5,358,000 in the liquidator's account.