Shanghai businessman Richard Yan sought by New Zealand liquidators for NZ$60 million debt he owes to collapsed construction firm
- Liquidators do not believe that Yan, also known as Yan Ciliang, lives at the Shanghai address known to them
- Notices will be placed in newspapers in Hong Kong and mainland China this week, demanding NZ$60.9 million from Yan as debt repayment
Liquidators of collapsed Auckland-based construction company Mainzeal are pursuing Shanghai businessman Richard Yan, holding him liable for more than NZ$60.9 million (US$37.4 million) owed to the company’s creditors, in a case that has implications for Chinese businesses operating in New Zealand.
Andrew McKay, a partner with business advisory firm BDO Auckland, who is responsible for winding up the construction company, told the Post on Monday that advertisements would be placed in newspapers in Hong Kong and mainland China this week, after liquidators were authorised to serve notice on the Chinese businessman.
“We have tried to contact Richard Yan through multiple channels, to serve notice on him and eventually obtained orders from the [New Zealand] High Court to conduct that service through email,” he said. “We have also been given instructions to place advertisements in leading newspapers in Hong Kong and China.”
The liquidators were authorised by the court to place the advertisement. In Hong Kong, the advertisement will be placed in the Post.
“Yan is not a well-known business tycoon in China, but the debt he owes to creditors could taint Chinese businesspeople’s reputation in New Zealand,” said Ding Haifeng, a consultant at local financial advisory firm Integrity. “Some Chinese entrepreneurs are still investing in New Zealand in agriculture and tourism businesses.”
Privately-owned mainland property developers, including Shundi Customs, part of Shanghai-based Shundi Group, and Beijing-based developer Fu Wah, have also been selling flats to buyers in New Zealand.