Max Key considers ‘tell all’ after Teak Construction collapse

Max Key has revealed he is owed in the upper range of "six figures" by recently wound-up company Teak Construction Group. Photo / Key Painting

Max Key has suggested he may expose a major construction business that folded, owing his own company somewhere in the upper “six figures”.

Following Teak Construction Group’s placement into liquidation earlier this month, Key has asked his Instagram followers whether he should share a “tell all” on the situation.

MTK Capital, a company associated with the son of former Prime Minister Sir John Key, has been listed as a creditor to the failed firm.

Teak owes creditors $7.9 million in debts, but has an asset total of only $6.4m, according to the liquidation report released yesterday.

The building company was involved in several massive projects across Auckland, contracting out works to a range of subcontractors like Key.

Shareholders appointed liquidators to Auckland's Teak Construction on March 2. Photo / Teak Construction

Key said his residential construction business Key Companies is owed “well into” the range of “six figures”.

Last week Raine Selles, a construction law expert for Concordia Resolution, said Teak’s conduct was disappointing.

“Teak has put itself in liquidation after fighting subcontractors for months in court and adjudications over ... withholding of retentions and other sums due.

“Let’s see if those retentions are actually held in trust as they have constantly advanced by themselves and their lawyers.”

Operating for 34 years, Teak claimed to have “built a solid reputation for consistently high-quality construction” on their website.

“We are New Zealand-owned and -operated and have deep foundations in fairness, transparency and reliability.

“We’ve cut the ribbon on more than 500 successful builds, from commercial projects, to government, remedial and residential works.”

Victopia Apartments is one of the projects Teak Construction Group was working on before the liquidation. Photo / Dean Purcell

PFK Corporate Recovery’s Steve Lawrence and Chris McCullagh have been appointed by shareholders to handle the liquidation.

Several prominent businesses in the construction sector have securities with Teak, including Placemakers, Carters, Mico and Hilti New Zealand.

It is unclear if MTK Capital had acquired security in relation to the insolvent builders, with unsecured creditors expected to face an uphill battle reclaiming their debts.

Working across residential, interiors and painting, the company has been involved in more than 20 projects since it was founded in 2019.