NZ Places Du Val Group into Statutory Management Amid Financial Crisis

"The situation with Du Val Group is complex and extensive, requiring immediate intervention to prevent further harm," Minister Bayly stated.

The New Zealand Government has placed companies associated with the Du Val Group, a major developer of residential property projects in Auckland, into statutory management. Commerce and Consumer Affairs Minister Andrew Bayly announced the decision, citing the group's recent move into interim receivership and the significant liabilities it has incurred.

"The situation with Du Val Group is complex and extensive, requiring immediate intervention to prevent further harm," Minister Bayly stated. "Statutory management is a measure of last resort, employed when ordinary insolvency laws are insufficient to manage a corporate failure of this scale. This step is necessary to protect investors and creditors and to ensure the orderly administration of the company's affairs."

Du Val Group comprises approximately 70 entities, including 46 subsidiaries and 20 special purpose vehicle limited partnerships. The group involves between 120 to 150 investors, home buyers, and commercial lenders. Minister Bayly emphasized the importance of an orderly and fair process given the number of people affected.

By placing Du Val into statutory management, all ongoing insolvency processes are suspended, allowing a single team to manage the group's affairs rather than multiple insolvency processes occurring simultaneously. The decision follows a recommendation by the Financial Markets Authority (FMA), which has been investigating the group's financial situation and received a report from the Court-appointed interim receivers.

With Cabinet's approval, the Governor-General has issued an Order in Council, making the statutory management effective immediately. The order applies to four core Du Val corporations and 20 associated limited partnerships, along with 46 subsidiaries. One subsidiary is excluded from the order as it is 50% owned by a third party and operates independently of the Du Val Group.

The Government has appointed John Fisk, Stephen White, and Lara Bennett of Price Waterhouse Cooper (PwC) New Zealand as the statutory managers. This follows their recent appointment by the High Court as interim receivers for the Du Val Group.