Auckland property investor and developer Du Val Group goes into statutory administration

Du Val Group has been placed into statutory administration. File photo.
photo: Nito 500/123RF

• Government places Auckland property developer Du Val Group and its subsidiaries into statutory administration
• The minister said the group was heavily indebted and had complicated affairs
• Active construction projects continue
• Statutory management is rarely used

Authorities have placed Auckland property investor and developer Du Val Group into statutory administration to tighten control over it.

The government sought the order from the Governor on the advice of the financial regulator, the Financial Markets Authority (FMA), which initially The group was taken over In early August.

Business Minister Andrew Bayly said the Duval Group’s debt-ridden situation was so complex and large it required immediate intervention to prevent wider damage.

“Statutory administration is a last resort for dealing with complex corporate insolvencies where ordinary insolvency law is insufficient. Its purpose is to protect investors and creditors from further loss and to bring the company’s affairs into an orderly management.”

The rarely used statutory management applies to the four core Du Val companies and 20 related limited partnerships and 46 subsidiaries. One subsidiary was excluded because it is 50% owned by a third party and operates independently of the Du Val group.

The group was founded and controlled by directors Kenyon and Charlotte Clark.

Provisional receivers John Fisk, Stephen White and Lara Bennett of PricewaterhouseCoopers were appointed as statutory managers.

Fisk said managers hope ongoing construction projects in Duvall will continue and that business at the rental properties will continue as normal.

“Our initial focus is to preserve and achieve the best value for all stakeholders. We will communicate with all creditors and investors and conduct a thorough investigation.”

Last year, the FMA published a Formal warning Targeting Du Val’s investment arm, Du Val Capital Partners, alleging it could have misled or deceived investors.

Statutory regulation was introduced after the 1987 stock market crash and has been rarely used, particularly after the 2009/10 global financial crisis, to regulate Several financial companies collapsedespecially South Canterbury Finance.