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Mainzeal receivers recoup $28.3 mln from asset sales, recoveries, distribute $3.6M to liquidators

Tuesday 8th April 2014

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Receivers for Mainzeal Property & Construction and Mainzeal Living recovered some $28.3 million from asset sales and recoveries in their first 12 months and made payments of $26.5 million, including settling outstanding wages and distributing surplus funds to the liquidators.

Bank of New Zealand, which was owed $11.3 million as secured creditor of the Mainzeal companies, appointed PwC's David Bridgman and Colin McCloy as receivers on Feb. 6, 2013. Liquidators were appointed to the entire Mainzeal group later that month.

The second receivers' report shows BNZ got $2.2 million in distributions in the 12 months through February from Mainzeal Property and Mainzeal Living, bringing the bank's total recovery to date to $10.7 million including proceeds of the sale of the group's head office owned by another company, 200 Vic. Included in the total owed is about $900,000 related to a bond issued by BNZ.

Mainzeal Property and Mainzeal Living's receivables in the 12 months ended Feb. 5 included $5.9 million from asset sales and $8.75 million from property sales. Contract recoveries amounted to $9.2 million.

Payments included some $5.3 million owed to employees, about $3.1 million for the receivers' own fee, and $1.1 million on legal fees. A surplus of $3.58 million was handed to the liquidators.

Unsecured creditors, whose claims are being dealt with by the liquidators, total $139.3 million. In the liquidators' report of last month, BDO's Andrew Bethell, Brian Mayo-Smith and Stephen Tubbs said they were "currently reviewing and reconciling claims submitted by creditors and admitting such claims where appropriate."

"A number of creditors" had yet to submit a claim on the prescribed form, they said.

The receivers said in their latest report that company records showed some $2 million may be owing to the Inland Revenue Department for GST and PAYE and talks with the tax department were continuing.

The receivers recovered $1 million from the companies' 50 percent interest in a Christchurch project management business providing services to insurance companies in relation to earthquake claims, the report says.

Former Prime Minister Jenny Shipley and former Brierley Investments chief executive Paul Collins resigned as directors of Mainzeal Property & Construction in December 2012, at the request of Mainzeal and Richina group principal Richard Yan. They remained directors of Mainzeal Group until just before the MPC receivership.

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