Ernst & Young Ltd liquidator Rhys Cain confirmed legal proceedings against former directors of Stonewood Homes Ltd, Mr Boult and Brent Mettrick, had been settled.
A hearing scheduled for November would not now proceed.
Mr Cain said the legal proceedings would be covered in the next liquidator’s six-monthly report.
Mr Boult said the matter was subject to a confidentiality agreement, so he was not able to comment.
The legal action began in December 2016, and was largely funded by PLF Services Ltd, a company owned by property developer Chris Meehan, who was responsible for several major developments in the Queenstown district.
"We are glad to have been able to assist the liquidator in taking the action to hold both former directors to account for what happened at Stonewood Homes, remembering that there were a significant number of creditors who have lost many millions of dollars.
"We agree with the decision of the liquidator in reaching the settlement," Mr Meehan said.
As previously reported, the liquidators claimed Mr Boult and Mr Mettrick allowed Stonewood and another company to trade while insolvent for about 20 months, during which the companies’ financial positions deteriorated by millions of dollars.
