Setback for Mainzeal creditors

The outcome of a recent Court of Appeal decision is that two companies related to the Mainzeal group, Richina Global Real Estate Limited and Isola Vineyards Limited, have resisted being placed into liquidation (read the report here).

The case is interesting in terms of considering the circumstances in which a liquidation order will be made if a debt forming the basis of the application for liquidation is disputed.

The decision is a setback for Mainzeal creditors in terms of the time and cost involved in pursuing potential recoveries, and another chapter in the Mainzeal story since the receiverships and liquidations rocked the construction industry early last year.

It remains to be seen how things will progress from here. It is not clear at this stage whether the decision will be appealed.

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