The Government has placed companies associated with Du Val Group, a developer of large-scale residential property projects in Auckland, into statutory management,
Commerce and Consumer Affairs Minister, Andrew Bayly said the Du Val Group had recently gone into interim receivership, leaving significant liabilities.
“The situation is complex and of such a scale that immediate intervention is required to prevent broader harm,” the Minister said.
“Statutory management is the option of last resort used to deal with complex corporate failure where ordinary insolvency law is inadequate. It is intended to protect investors and creditors from further losses, and to enable the orderly administration of a company’s affairs.”
Du Val Group is made up of around 70 entities, including 46 subsidiaries, and 20 special purpose vehicle limited partnerships.
“There are between 120–150 investors, home buyers and commercial lenders tangled up and given the number people involved it’s important we ensure the process is orderly and fair,” said Mr Bayly.
“By placing Du Val into statutory management, all current insolvency processes are suspended, enabling the affairs to be dealt with by one team of people, rather than multiple insolvency processes unfolding simultaneously.”
The Government’s decision to put the companies into statutory management follows a recommendation by the Financial Markets Authority (FMA). The FMA made its recommendation based on its ongoing investigations and following a report from the Court-appointed interim receivers.
The High Court put Du Val Capital Partners and other Du Val Group companies into interim receivership after an application from the Financial Markets Authority. The interim receivership orders were also made in respect of property developers, Kenyon Clarke and his wife, Charlotte Clarke (pictured) on 2 August.
“Following Cabinet’s approval, the Governor-General has made an Order in Council. This decision is effective from today,” said Mr Bayly.
The order applies to four core Du Val Corporations and 20 associated persons (all limited partnerships), along with 46 subsidiaries. One subsidiary is excluded as it is 50 per cent owned by a third party and operates independently of the Du Val Group.
The Government has appointed John Fisk, Stephen White and Lara Bennett of Price Waterhouse Cooper (PwC) New Zealand as statutory managers. This follows their recent appointment by the High Court as interim receivers for the DuVal Group.
Du Val investors and creditors with questions on the statutory management process should contact PwC New Zealand at nz_duval@pwc.com.
