Independent directors of Mainzeal Group say lack of credit and the withdrawing of support from BNZ forced them to resign.
Mainzeal's operating arm, Mainzeal Property and Construction, was placed into receivership this week with devasting industry fallout.
Mainzeal Group is not in receivership, but its independent directors, former prime minister Dame Jenny Shipley, Paul Collins and Clive Tilby resigned this week.
In a joint statement released today, they say a TVNZ One News claim that they did not know until the end of 2012 Mainzeal needed capital was incorrect.
The directors say they were well aware of Mainzeal's financial position at all times.
"All directors ... worked hard on the particular business challenges we faced through the middle and latter part of 2012, and with the support of our bankers had arrangements in place and equity support from our shareholder (Richina Pacific) up until late January this year.
"Furthermore we had a three-year business plan, banking arrangements in place, negotiations were going on with the shareholder and commitments were being made by the shareholder regarding future support for the company, which would see it return to a cashflow position position and profitability in 2013."
The directors say at the end of January the written undertakings the company, the directors and the bank had relied on changed.
"This led to the bank (BNZ) withdrawing support and despite exhaustive efforts by many people, a binding commercial solution was not able to be achieved.
"At that point the independent directors felt they had no choice but to resign.
"Mr Yan put the company into receivership citing difficult trading conditions and the withdrawal of shareholder support from Richina Pacific as the explanation.
"The independent directors remain deeply saddened that this has occurred, and will assist in any way required in the official process now under way," they say.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: NZ shares mixed; Spark, Fletcher join Asian rally, Xero drops as Drury trims stake
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Sir Ralph Norris spells out reasons for Fonterra board departure
- iPredict closing down due to money laundering risk
- Serco's prison report challenge: Hide and Davis go head-to-head
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories