PHOTO: Kenyon and Charlotte Clark. FILE
High-profile developer Du Val is facing a financial crisis, with initial investigations revealing debts of at least $250 million. In response to the scale of the business’s collapse, the Government has taken the rare step of appointing a statutory manager.
The Financial Markets Authority (FMA) requested the appointment, citing the situation’s complexity, and an active investigation is ongoing. PwC, the accounting firm now in control, told 1News that Du Val’s collapse is the most complex case it has ever handled.
A receivership report has been submitted to the High Court but has not yet been made public.
The Du Val Group, founded by prominent socialites Kenyon and Charlotte Clark, included core construction companies and numerous other entities, creating a complicated situation for liquidators. The list of those owed money is extensive, including lenders, contractors, and potential homeowners, with 120 investors also caught in the fallout.
Amid the turmoil, PwC has managed to restart work on two developments, ensuring contractors are paid. Du Val Capital Partners Limited and several other entities within the group were placed in interim receivership on August 2.
Commerce Minister Andrew Bayly announced that the Government had decided to place the companies associated with Du Val Group into statutory management. This move, which required Cabinet approval and an Order in Council from the Governor-General, is a rare intervention last used 14 years ago during the collapse of South Canterbury Finance.
According to the FMA, the Corporations Act provides remedies for complex corporate failures, especially when a company has been operating fraudulently or recklessly, or when ordinary laws are inadequate for an orderly wind-up. In this case, both provisions are considered applicable.
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Bayly emphasized that the move aims to protect investors and creditors by allowing a statutory manager to take full control of the group, manage developments, and oversee asset realization in a more orderly manner. He highlighted the Government’s swift action to implement this measure, adding that it is designed to expedite the process and protect those affected.
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SOURCE: 1NEWS