Money that Mainzeal Property & Construction owed to its
staff, a trading bank and Inland Revenue has been largely
But subbies look to be left out in the cold with little hope
of getting their $106.2 million back.
Colin McCloy, joint receiver of Mainzeal Property &
Construction and Mainzeal Living with David Bridgman,
indicated three parties including the BNZ had received about
The money had been largely repaid so the receivers' roles
were almost completed, McCloy said yesterday.
PwC was appointed on February 6 last year and McCloy said
close to $11.3 million owed to the bank had been repaid as
well as the $5.3 million owed to Mainzeal staff in wages,
salary and holiday pay and $600,000 owned to IRD.
The receivers recovered that - and more - via sale of
property and receivables (money owed to Mainzeal) and the
sale of plant and equipment including cranes, vehicles,
portacom buildings, tools and other items, McCloy said.
A number of former employees were engaged on a casual or
contract basis to help with recovering money and other
matters, McCloy and Bridgman said, paying tribute to those
hurt by the fallout.
"We recognise this is an extremely difficult situation for
the many people and businesses impacted," they said.
The receivers' roles did not include trying to recover any of
the much larger $106.2 million Mainzeal owed to trade
suppliers, subcontractors and others, McCloy said. Recovery
of that amount is the responsibility of liquidators Andrew
Bethell and Brian Mayo-Smith.
Bethell said yesterday the chances of recovering the
unsecured creditors' $106.2 million was uncertain, partly
because of litigation being brought against other companies
by the liquidators.
"That clearly will be disappointing to the subcontractors but
all we're trying to do is maximise any recoveries and ensure
that's as high as it can be," Bethell said.
Repairs of Hobson St's twin tower high-rise Hobson Gardens
continued after materials were made available from King
Facade, one of the many Mainzeal associates also in
liquidation, he said.
"We controlled the facade materials and ended up selling
those to the Hobson Gardens body corporate," Bethell said.
"It was a good outcome for the creditors of King Facade and
Mainzeal and for the owners of Hobson Gardens. It has enabled
the building to be completed and without that, I imagine that
task would have been significantly more expensive and
McCloy said the money the receivers had clawed back had been
raised from $4.6 million asset realisation and plant and
equipment was sold by tender, auction or direct negotiation.
A further $7.9 million was raised by selling an Auckland
commercial property and a number of Christchurch residential
properties and Mainzeal was owed $9.3 million in contract
receivables at the time of the receivership so McCloy and
Bridgman collected on those debts.
In fact, the receivers got more than they needed. "We've
passed some money across to the liquidators," McCloy said of
raising $22.5 million when much less was needed for the BNZ,
staff and IRD, although $3.8 million needed to be paid out of
that in terms of expenses, security on 76 active sites which
had to be secured at the time of the collapse and receivers'
fees of $2.3 million.
McCloy said the BNZ had loaned money for Mainzeal to buy its
head office at 200 Victoria St West in Auckland and that sale
repaid the loan.
PwC's role will end soon. McCloy and Bridgman issued a
six-monthly report on October 6 last year and another is due
PwC receivers' role:
Asset realisations $4.6m
Property sales $7.9m
Contract recoveries $9.3m
GST, interest and others
Total recovered for first-ranking and preferential creditors:
[Source: Colin McCloy, PwC]
BDO liquidators' role:
$106.2m owed to unsecured creditors
Outcome: uncertain "not likely to be substantial"
[Source: Andrew Bethell, BDO]
- Anne Gibson of the NZ Herald