fran o'sullivan: jenny shipley could have been key to saving mainzeal - home appliance manufacturer

Comment: When Richina Pacific needs to withdraw money from China to repay the loan of its New Zealand subsidiary Mainzeal, why is it not playing its biggest trump card?
Richard Yan, executive chairman and largest shareholder of Richina, will certainly think of this.
If the former prime minister, Mrs. Jenny Shipley, made a request in person --
Who is the chairman of Mainzeal, director of Richina Pacific
It will certainly receive a sincere reception.
Since Judge Francis Cook's high court judgment found that she and three other directors had violated their duties under Article 135 of the Company Law, Shipley's reputation had been compromised by reckless transactions
Due to the collapse of the New Zealand construction company, she personally received $6 million in compensation. But in 2008-
2010 she rides very high in China.
She is not only an independent director in Shanghai and Hong Kong
China Construction Bank listed
The world's second-largest bank, with total assets of US dollars in 2019, has a market value of US dollars.
But she's also a board member in Beijing.
The International Financial Forum is an independent international organization established in October 2003 with the support of the Chinese government and financial institutions.
Her position in China was later recognized for her appointment as a board member of the prestigious Boao Forum for Asia --
Commonly known as Davos, China-
The Chinese president attends each year on Hainan Island, where he has a summer house.
If any New Zealander has a connection in China, China can take responsibility to ensure that the main loan to the parent company is remitted, and Shipley has and does.
But it doesn't seem to have happened.
The collapse of the construction company dates back to 2004 and 2005.
Judge Cook said that this is the capital extracted from the main enthusiasm of China Pacific company to buy Chinese assets including Shanghai Leather Company, which is worth more than $700 today ($1b).
However, during the trial, Yan refused to confirm the figure.
Shipley resigned from the Richina board of directors in 2009, but maintained her primary role.
Judge Cook noted that while mainstream investors hold $44 in negative assets.
8 m, the Chinese Pacific Company has received a considerable amount of money from the main enthusiasm.
The judge said it was done to ensure that there are fairly valuable assets in China.
The transactions were made through loans of about $42, which were recorded as assets on Mainzeal's books.
But they are not rewarded when necessary.
Expert advice given during the Mainzeal trial said that while Chinese authorities may allow Chinese companies to acquire enterprises overseas, it is unlikely that the authorities will support funds used for failing enterprises.
This suggestion ignores the fact that:
Under the environment of GFC, investment losses of Chinese enterprises-
New Zealand Corporation (
Just not my own).
Among them: on May 2009, Haier, the Chinese home appliance manufacturer, confirmed that it will hold a cornerstone stake in Fisher and Pike Electric as part of a $189 financing.
This is widely seen as the lifeline of a New Zealand company that faces financial difficulties worldwide
Economic downturn.
In November 2009, Agria became the largest shareholder of PGG Wrightson, and after a total of $249 was raised by the unprofitable rural services group, the group acquired the shares.
Sell stocks and bonds to cut debt levels.
Shanghai, July 2010-
Listed Bright Dairy has agreed to purchase a majority stake in Canterbury milk processor Synlait milk with regulatory and shareholder approval.
Haier and Bright Dairy also need to be approved by the Chinese regulatory authorities before investing in New Zealand companies.
At the trial of the High Court, former diplomat Charles Finny argued that, under Chinese law, Richina's subsequent transaction to repay part of the loan by providing Chinese construction materials to the mainstream could be illegal, also ".
Of course, it would be better to solve the problem in advance?
My point is, at 2008-
2009 New Zealand and China have signed an environment for a road
At a diplomatic and political level, if necessary, the Chinese authorities could have been encouraged to break free trade agreements to ensure that the main enthusiasm can be repaid.
Richina's founders also have important connections in China.
The judgment disclosed a Yan-
The LED project, which aims to acquire vineyard rights on waihek Island, will be developed as a hotel for Chinese Communist Party officials, "with cash from Mainzeal's account to help with the purchase ".
Later, Yan promoted a project to build a New Zealand house on Chinese land in Shanghai.
Authorities in New Zealand declined.
It is vital that this judgment reveals tensions with Richina's own shareholder group over major shareholding issues.
Judge Cook said this tension in the shareholder group has been an important factor until Mainzeal's death.
He ignored a small stake in the Shipley family trust in Richard Pacific, saying it was "basically irrelevant ".
"This is not in his (Yan's)
Personal interests that provide support in a legally binding manner or the interests of other shareholders.
"Richina Pacific" has pulled a lot of money from the mainstream through vehicles loans that he has no ability to repay.
The money was used by China Pacific Group for its considerable advantage.
Buying assets that are now very valuable in China
By the end of 2009, the amount of borrowing, including interest, had exceeded $42 m.
The judgment said that the exclusion of the value of these loans from Mainzeal's balance sheet meant that Mainzeal was bankrupt, as it failed from 2005 to 2013.
As Judge Cook pointed out, it is clear that Yan and other Chinese Pacific shareholders have benefited greatly from the use of Mainzeal's funds.
And they have-
Land assets in Shanghai are about $700.
The enthusiastic directors destroyed the company's reputation, and the creditors of the construction company went bankrupt.
It is not too late to pressure Chinese authorities to force Richina to lend to New Zealand liquidators.