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Liquidators appointed to Mainzeal, Richina at shareholder behest

Liquidators have been appointed to a raft of Mainzeal and Richina related companies at the request of the shareholder.

BDO's Andrew Bethell and Brian Mayo-Smith have been appointed liquidators of the group companies, including the first firm to fall over, Mainzeal Property and Construction, according to documents lodged with the Companies Office.

The appointments were made yesterday by a special resolution of the shareholder, as opposed to being court appointed.

The companies put into liquidation include Mainzeal Property and Construction, Mainzeal Living, 200 Vic, Mainzeal Group, Building Futures Group, Mainzeal Construction, Mainzeal Ltd, Mainzeal Construction SI, MPC NZ Ltd and RGRE Ltd.

A number of Richina-related companies and limited partnerships are still active, according to the Companies Office.

In a statement, the liquidators say they are investigating the companies' affairs and their first report is due within five days.

"It is our intention to hold a creditors meeting to enable creditors to meet with the liquidators, ensure the liquidators are fully aware of their concerns and to elect a creditors committee to work with and assist the liquidators with their investigations into the reasons for the failure of the group, the consequent losses to contractors, creditors and other stakeholders.

"The liquidators are meeting with the receivers of Mainzeal in the next few days to obtain more financial and operational information about the group."

Last month, BDO's Mr Mayo-Smith, Mr Bethell and Stephen Tubbs were appointed liquidators for related company King Façade NZ, which was found to have racked up $18.9 million of total liabilities on assets of $4.5 million.

On February 21, Richina chairman John Walker published a statement on the company's website saying Richina Pacific was reviewing the guarantees it has provided Mainzeal and its affiliates.

"The board of directors and management of RPL (Richina Pacific Ltd) are reviewing the level of exposure that RPL has as a result of the receivership of Mainzeal. We will communicate with the shareholders as we know more," he said.

(BusinessDesk)

Comments and questions
4

About time. All the associated companies should be liquidated, including the Winery which was no doubt (like every other Yan entity) paid for or proped up by the construction arm's cashflow and profit.

So has Richard Yan fronted up to this mess yet?

Why should he?

Who fronted up when Feltex fell over?

I cannot recall anyone fronting up when Chase fell over, did you?

I see some cause for optimism here. Like a phoenix, the two principal companies will rise from the ashes -- albeit, in a different guise -- as 'Mainlacklustre' and 'Poorina'.