Jenny Shipley appeal fails

[Lilith7]

She & the other directors of Mainzeal must pay more than $6 million




https://www.stuff.co.nz/business/1327993...peal-fails

The directors should have realised by 2010 that without a significant injection of capital, or assurances of support that could be reasonably relied on, allowing Mainzeal to continue to trade was likely to expose creditors to serious loss, the justices said.

“Mainzeal was balance sheet insolvent from 2005, albeit this was not apparent from its financial statements,” the court found.

In the end, Bank of New Zealand (BNZ), Mainzeal’s bank, called receivers into Mainzeal in January 2013 after it saw a letter from Yan in which he confirmed no financial support for Mainzeal would come from China.

Mainzeal’s debts to BNZ were paid in full.

Sub-contractors and Mainzeal staff were among debtors left out of pocket.

“The creditors have waited a long time for this decision which brings to a close over eight years of prolonged court proceedings, including trials in the High Court, Court of Appeal and Supreme Court,” he said.

“At every stage of this long process, the defendants and their insurance company, QBE, have denied wrongdoing which has only delayed justice for the creditors,” McKay said."