Shipley facing legal action over Mainzeal collapse

Dame Jenny Shipley. Photo / Mark Mitchell

Former Prime Minister Dame Jenny Shipley says she will "vigorously defend" legal action she is facing from the liquidators of collapsed property group Mainzeal.

Liquidators confirm they have filed a court claim involving allegations of a breach of directors duties.

Co-liquidator Andrew Bethell confirmed the defendants in the claim included Shipley, Sir Paul Collins, Richard Yan, Siew May Kwan, Peter Gomm and Clive Tilby.

All are former directors of Mainzeal Group, which collapsed in 2013.

Bethell couldn't comment further as the claim was before the court.

As at September last year Mainzeal liquidators had received $151.3 million in claims from unsecured creditors.

A statement from Shipley's lawyer Michael Arthur said the claim will be "vigorously defended".

"Liquidators of Mainzeal Property & Construction Limited have commenced a civil claim against Rt Hon Dame Jenny Shipley (for whom we act) and others," Arthur said in a statement.

"The claim alleges a breach of directors' duties and seeks damages.

"It will take some weeks to review the claim and file a defence, but Dame Jenny and others strongly deny any allegation of wrongdoing.

"The claim will be vigorously defended.

"At this stage, while the claim is before the Court, Dame Jenny does not intend to make any further comment."

Mainzeal, which Shipley chaired, collapsed in February 2013.

Shipley, New Zealand's first female Prime Minister, led the country from the end of 1997 to the end of 1999.