Shipley Rejects Mainzeal Insolvency Claims At Auckland High Court

Former prime minister Dame Jenny Shipley gave evidence for a second day at Auckland High Court rejecting claims that Mainzeal, a construction company she chaired, was insolvent as early as 2008, Stuff.co.nz reported. Mainzeal was put into receivership in early February 2013, but liquidators Andrew Bethell and Brian Mayo-Smith of BDO allege the company traded while insolvent, and are suing some of its former directors, including Shipley, for up to $75 million in damages to repay Mainzeal's creditors. Shipley betrayed no nerves while giving evidence of her involvement with Mainzeal between 2004 and early 2013, a period in which it suffered big losses on several major construction projects, and faced multiple leaky building claims. She read from a script for around three hours, stressing she carried out her directors' duties conscientiously, and had relied on pledges of financial support for Mainzeal from the wider Chinese-owned Richina Pacific investment group of which Mainzeal was a part. Read more.

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