PHOTO: 1NEWS
Auckland property developer and investor, Du Val Group, is reported to owe nearly $240 million to creditors and investors, according to the first report from its statutory managers. The group was placed under statutory management last month after growing concerns over its “significant liabilities.” This action followed its interim receivership, ordered by the High Court.
In their initial report, statutory managers John Fisk, Stephen White, and Lara Bennett from PwC disclosed that Du Val owes $196.4 million to creditors. This includes $18.1 million to unsecured creditors, $170.7 million to secured creditors, and $7.6 million to preferential creditors. Additionally, PwC noted that the group has $41.2 million in outstanding obligations to investors.
Among the preferential creditors, $83,000 in claims are linked to employee entitlements, while Inland Revenue is owed $7.5 million. These figures were accurate as of August 21.
The Du Val Group consists of a network of four main corporations, 20 related limited partnerships, and 46 subsidiaries. It was founded and operated by directors Kenyon and Charlotte Clarke. However, PwC revealed that not all entities within the Du Val network were actively trading.
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The bulk of creditor claims target Du Val Construction Limited, Du Val Property Group Limited, Investment Portfolio Management Limited Partnership, and Trans-Tasman Pacific Limited Partnership. Creditors include notable organizations such as 2Degrees, ACC, Auckland Council, and Nova Energy.
Despite these findings, PwC highlighted ongoing uncertainties in Du Val’s financial records. “Aside from the actual cash on hand at the date of statutory management, the figures presented in this report are based on the accounting records of the group entities,” PwC said.
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They also identified various limitations within Du Val’s financial records, cautioning that the figures are subject to change as further analysis continues. The group remains under investigation by the Financial Markets Authority and the Ministry of Business, Innovation, and Employment (MBIE).
SOURCE: 1NEWS