Shanghai businessman Richard Yan declared bankrupt after New Zealand liquidators fail to track him down for hearing

New Zealand High Court held Yan bankrupt in connection with US$36.6 million he owes construction company Mainzeal’s creditors

Ruling issued after Yan did not show up at a hearing on Thursday despite notices the liquidators placed in Hong Kong and mainland China media

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Mainzeal Property and Construction was one of the largest New Zealand property and construction companies until being placed into liquidation in February 2013.

Published: 9:07pm, 9 May 2024Updated: 9:37pm, 9 May 2024

The New Zealand High Court has declared Richard Yan bankrupt after the Shanghai businessman failed to come to the negotiating table in connection with more than NZ$60.9 million (US$36.6 million) he owes creditors of failed construction company Mainzeal.

Associate judge Grant Brittain adjudicated Yan bankrupt on Thursday, following months of failed efforts to chase down the former director of the Auckland-based firm.

Yan did not show up at a hearing despite advertisements the liquidators placed in newspapers in Hong Kong and mainland China after they were authorised in January to serve notice on the businessman, said Andrew McKay, a partner with business advisory firm BDO Auckland, which is responsible for winding up Mainzeal, in a statement to the Post. Yan, also known as Yan Ciliang, is not well known in China.

“Since the advertisements and despite numerous attempts to get Yan to the negotiating table we have been ignored,” McKay said. “[Neither] Mr Yan nor his advisers bothered to show up at today’s hearing.”

Zane Kennedy, a lawyer for BDO, told the court that the last communication with Yan on March 6 was via email, but since then “he [has] gone quiet”, according to the statement.

“The [bankruptcy] documents have undoubtedly been drawn to the attention of the judgment debtor Yan,” he added.

Richard Yan in an undated photograph. Photo: Weibo.