Think twice before demanding

A recent judgment by Associate Judge Christiansen serves as a reminder that statutory demand on a “payment claim no payment schedule” basis should only be made where there is a clear debt due. In Lot 8 Investment Ltd v RPS Construction Ltd [2017] NZHC 1400, RPS Construction Limited had served a statutory demand on Lot 8 Investment…

Finding New Zealand along the Belt and Road

The Belt and Road Initiative (B&R, OBOR, 一带一路), announced by President Xi Jinping in late 2013, is China’s most ambitious development strategy. It aims to create new economic zones based around the ancient Silk Road trade route overland (the belt) and across the sea (the road). China expects to trade more than US$2.5 trillion a…

Direct Agreements – Back from the dead?

In what will be a relief for contractors, the Court of Appeal has overturned the High Court decision, and held that payments made to contractors by financiers pursuant to a direct agreement are not voidable transactions recoverable by a liquidator. While some may see this as a return to the previous position there are a…

Mainzeal – End of an era (Receivership)

Mainzeal was one of the largest construction companies in New Zealand when it was put into receivership in 2012, liquidation followed shortly afterwards. Fast-forward five years and the receivership stage process has just been completed with the Receivers retiring on 15 May 2017. The completion of the Receivership means that the secured creditors (bank) and…

Steel mesh allegations head to court

The Commerce Commission have announced today that 29 charges for making false and misleading representations have been filed against Steel & Tube. The charges relate to representations made about steel mesh products between 1 March 2012 and 6 April 2016. The charges allege that Steel and Tube made misleading representations on their batch tags, batch…

Pre-Budget Forecasts – What the construction industry can expect from Budget 2017

Election year budgets have a tendency to be the most expenditure focused of the triennium, often labelled as ‘lolly scrambles’ or ‘vote buying’, and ever since Treasury released the Budget Policy Statement in December it’s been clear Budget 2017 will be no different. As the Prime Minister put it in his pre-budget speech ‘A growing economy…