Richard Yan’s Mainzeal construction firm in receivership; Dame Jenny Shipley and other directors resign all Mainzeal positions

The country’s third largest construction company collapsed and was placed in receivership today after the Mainzeal Group’s major shareholder, Richina (NZ) LP, refused to commit more capital and the bank pulled its funding.

Mainzeal’s sole remaining director Richard Yan – who also heads Richina – said that after  “a series of events that had adversely affected the company’s financial position” and a general fall off in commercial construction work, the company could no longer continue trading.

“The company was no longer getting shareholder support,” said Yan.

The formal press statements were issued under Yan’s name. But Companies Office records show Dame Jenny Shipley, Paul Collins and Gibly resigned as directors of Mainzeal Property and Construction on December 31, last year. They stepped down from the Mainzeal holding company board yesterday.

PWC partners Colin McCloy and David Bridgman were appointed as receivers for Mainzeal and associated entitities, as a result of a request made by directors to Bank of New Zealand. Receiver Colin McCloy said they were committed to doing the best they could for suppliers, staff and subcontractors of Mainzeal.

“We will work closely with all parties involved with Mainzeal contracts to determine the best way forward,” he said in a statement.