Decmil Update for Retention Creditors
At the time of liquidation, there was $3m in retention claims. Under the Construction Contracts Act, this money must be held on trust. Two weeks prior to the liquidation, Decmil Australia deposited $3.2m into their NZ subsidiary. The implication is that Decmil Australia was holding the retention money in their Australian bank account, which is probably legally correct, and transferred the cash before appointing a liquidator. This means that there should be $3m in retention cash to be paid to New Zealand retention creditors.
Under New Zealand law, a retention fund should have its own receiver. Normally the liquidator or receiver of the company applies to Court to take this role. Under the circumstances, this is not appropriate.
Tempest is co-ordinating with retention creditors to have a receiver appointed that is not McVeigh. We have advised him that, should he apply to Court to get a determination on the position of the retention fund, that Tempest should be given an opportunity to be heard.
We look forward to receiving your support. For further information or queries, please contact us.