4 Apr 2013

Mainzeal creditors seek answers at meeting

6:01 am on 4 April 2013

Up to 200 people owed money by the failed construction company Mainzeal have demanded answers from liquidators at a meeting in Auckland on Wednesday.

Mainzeal went into liquidation in February and faces up to $90 million in claims.

The liquidator, BDO, has told unsecured creditors - many of them tradesmen or sub-contractors - to expect a substantial shortfall in money owed to them.

BDO wouldn't confirm the current amount received or owed to the receivers of Mainzeal, PricewaterhouseCoopers.

It also wouldn't rule out taking legal action against Mainzeal's former directors if they're found to have breached their obligations and duties while heading the company.

A creditor at the Remuera meeting, Gary Lightfoot, whose company Waikato Steel Fabricators is owed about $80,000 says if that's the case he wants to see that action pursued.

Mr Lightfoot said after the meeting, he doesn't expect to receive any of the money owed to him by Mainzeal.

Specialist Trades Contractors Federation president Graham Burke told Radio New Zealand's Checkpoint programme the mood was sombre, and agreed contractors are not hopeful of getting substantial sums of money back.

He says the structure around the companies is complicated so they couldn't expect too many answers at the meeting.

But he says contractors have comfort in the fact they have representation on a creditors' committee.