Wednesday, 17 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCommonwealth GamesCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Business

Directors claim full knowledge of finances

8 Feb, 2013 04:30 PM2 minutes to read
Mainzeal Property and Construction - one of New Zealand's largest construction companies - has gone into receivership.

Mainzeal Property and Construction - one of New Zealand's largest construction companies - has gone into receivership.

APNZ
Assurances changed unexpectedly at end of January, say board members.

Former independent directors of failed construction group Mainzeal said they had full knowledge of the company's financial position at all times, refuting earlier media reports.

TVNZ reported the directors did not know until the end of last year that the company needed capital.

"All directors, including the independent directors and the director and shareholder Richard Yan and the management, 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 up until late January of this year," former independent directors Dame Jenny Shipley, Paul Collins and Clive Tilby said.

"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 cash flow positive position and profitability in 2013," they said.

Advertisement

Advertise with NZME.

At the end of January, written undertakings and assurances that the company, the independent directors, and the bank had relied on, changed unexpectedly.

"This led to the bank 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," they said.

Yan, citing difficult trading conditions and withdrawal of shareholder support, put the company into receivership on Wednesday.

Mainzeal, the country's third biggest construction company, has suffered from a "series of events that had adversely affected the company's financial position", combined with a general decline in commercial construction activity and lack of shareholder support, Yan said.

PwC partners Colin McCloy and David Bridgman have been appointed receivers.

Mainzeal, the largest construction company behind Fletcher Construction and Hawkins Construction, employs around 400 people.

Related articles

Business

Mainzeal crash bad news for Horizon

06 Feb 10:15 PM
New Zealand

Mainzeal subcontractors: 'It's theft'

07 Feb 03:05 AM
New Zealand

Mainzeal staff get word via media

07 Feb 04:30 PM
Business

Recession hammered building firms, say chiefs

07 Feb 04:30 PM

It has been involved in $7.5 billion worth of projects, including Vector Arena and the Two Double Seven shopping centre in Auckland and the Supreme Court in Wellington.

It is understood the receivership was over the failure to make a $1.8 million payment on an outstanding $20 million credit facility.

Advertisement

Advertise with NZME.

Advertisement

Advertise with NZME.

Latest from Business

Business

Airbnb is rolling out new screening tools to stop parties

17 Aug 06:47 AM
Premium
Business

Why mortgage rates may have peaked despite big OCR hike

17 Aug 05:42 AM
Premium
Business

Banks stick with their NZ milk price forecasts

17 Aug 05:40 AM
Premium
Business

Māori tokenism in ads: Is it causing more harm than good?

17 Aug 05:38 AM
Premium
Business

Market close: Fletcher Building pulls market higher after strong result

17 Aug 05:35 AM

Most Popular

Premium
NZ's highest paid CEO: Fletcher boss takes home $6.58m
Business

NZ's highest paid CEO: Fletcher boss takes home $6.58m

17 Aug 05:30 AM
Adrian Orr fronts media after RBNZ hikes OCR by 50bp
Business

Adrian Orr fronts media after RBNZ hikes OCR by 50bp

17 Aug 02:00 AM
'Incredibly unsettling': Police update on suitcase homicide mystery
New Zealand|Crime

'Incredibly unsettling': Police update on suitcase homicide mystery

17 Aug 01:32 AM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP