Mainzeal Property and Construction Limited v Richina Global Real Estate Limited

In the proceedings, Mainzeal Property and Construction Limited (in receivership and liquidation) sought orders for the liquidation of Richina Global Real Estate Limited (RGREL) and Isola Vineyards Limited (previously known as Waiheke Vineyards Limited) under s 241 of the Companies Act 1993. The key legal issues were whether the defendants had failed to comply with statutory demands, whether the presumption of insolvency under s 287 applied, and whether the defendants had proved they were able to pay their debts. The court found that RGREL had failed to comply with the first statutory demand and the presumption of insolvency arose. RGREL did not discharge the burden of proving it was able to pay its debts, so the court appointed liquidators for RGREL. In relation to Isola, the court found that the presumption of insolvency under s 287 applied notwithstanding the payment of the Mainzeal debt. Isola had not discharged the burden of proving it was able to pay its debts, but the court exercised its discretion under s 241(4) not to appoint liquidators for Isola.