Yan loses High Court bid to suspend liquidation of Mainzeal-related company

Company director Richard Yan has lost his High Court bid for a stay to suspend the liquidation of his company Richina Global Real Estate, which is pending an appeal.

Last week, Justice Brendan Brown released his decision to place the Mainzeal-related company into liquidation and appoint BDO as liquidators. BDO is also the liquidator for the collapsed construction group Mainzeal, which brought the proceedings against Richina Global Real Estate.

During past hearings at the Auckland High Court liquidators have claimed a high number of transactions between the related companies.

The just released decision by Justice Brown says Richina Global Real Estate is now “a holding company only. It has no bank accounts.”

Former prime minster Jenny Shipley was a director for the company from June 2004 to October 2009. An outdated company website says “Richina Global Real Estate has diversified real estate development, construction, ownership and management operations in China and New Zealand.”

At the Auckland High Court this week Mr Yan claimed BDO should not be the liquidators of both Mainzeal and Richina Global, citing a conflict of interest.

Although Justice Brown denied Mr Yan’s application for a stay, he acknowledged Mr Yan’s concerns about liquidators potentially using information from one company to be usedfor the benefit of another company.

Justice Brown ordered liquidators not to “abandon or compromise the extant application to set aside pooling orders.”

Last year, the High Court ordered 13 Mainzeal companies to be treated as one following a pooling application by liquidators at BDO. Richina Global Real Estate was not included in the group of 13.

The pooling order is in dispute.

A notice of appeal has also been filed to the Court of Appeal to dispute the liquidation of Richina Global Real Estate, the decision says.

sflores@nbr.co.nz

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