Liquidators of failed construction company Mainzeal, which went under owing about $115 million, have voiced disappointment about Appeal Court proceedings announced this week.
Brian Mayo-Smith and Andrew Bethell of BDO issued a statement after four Mainzeal chiefs announced they would take a $36m ruling against them to appeal.
Richard Yan, Dame Jenny Shipley, Peter Gomm and Clive Tilby have all announced appeals in the last day against the High Court decision out this month: Yan yesterday, the others today.
The liquidators expressed their views.
"The unpaid subcontractors and creditors, who were owed more than $115m after Mainzeal collapsed in 2013, will have to wait longer to receive any of the $36m awarded to them, due to an appeal lodged by the former directors," they said this afternoon.
The decision was disappointing.
"The court judgement, which clearly recognised the former directors including Richard Yan and Dame Jenny Shipley, breached their director duties and were negligent in allowing the company to continue trading while insolvent, was emphatic," Bethell said.
"It is disappointing that the former directors have failed to accept this decision and acknowledge the pivotal role they played in the company's collapse.
"Many creditors, who through no fault of their own, lost millions when Mainzeal was put into liquidation and were put into serious financial difficulty as a result. The $36m damages awarded by the High Court meant they would have received some compensation for the considerable losses they suffered.
"We remain committed to ensuring the former directors are held accountable for the significant losses caused. We will be working with our legal team over the coming days to determine our role in the Court of Appeal," Bethell said.
The liquidators, on behalf of the creditors, have 10 working days to file a cross-appeal.