When Mainzeal Property and Construction Limited (Mainzeal) collapsed in February 2013, it left behind a raft of unsecured creditors who were jointly owed just over $110 million. The proceedings brought by Mainzeal’s liquidators against its former directors were for the effective benefit of these creditors.
The recent enforced receivership of national construction firm Ebert Construction has thrust receiverships back into the spotlight. With some 95 staff laid off and creditors owed around $40 million, the consequences of a high-profile company being forced into a receivership are apparent. Nonetheless, many people involved in the construction industry, and the general public, may have little knowledge of what a receivership entails.
This article provides an update on insolvency matters with reference to recent case law.