By norlinglaw

Mainzeal was a large construction company in New Zealand. It was a large domino that caused many small dominos to fall in slow succession.

Mainzeal was traded recklessly by its directors. Ultimately, the creditors were owed $110m and are unlikely to receive any distribution of any significance.

The liquidators pursed the directors at the High Court and were successful.

In part.

Ultimately, the recovery is too low to have any real impact on the creditors who have suffered a loss.

Here, Damien Grant of Waterstone Insolvency and Brent Norling of Norling Law discuss the facts, the legal case and the outcome for creditors.


You may also like

Collecting Debts post Covid-19
Right now, debtors are holding their cash tight. Creditors are not being paid in the same way they were. There are only two reasons debtors don’t pay. Either they can’t pay, or they won’t pay. Here, we address how to ascertain ...
How to Resolve IRD Debt Issues
The IRD is often treated as the lender of last resort. Money that is supposed to be paid to the IRD is used to juggle other obligations. Times are tough. Many businesses owe money to the IRD. We are helping many clients right now ...
Positioning Terms of Trade to Collect Debts
We work with business owners in collecting debts owing to them. But often, the collection process can be slowed down by inadequate terms of trade. Post Covid-19, there are KEY terms that you must have in your terms of trade to ...
Page 5 of 18