Panuku board member resigns after collapse of development company

Monday, 16 December 2019

Former Panuku and Tallwood Holdings director Martin Udale.

A board member from Auckland Council development agency Panuku has resigned from his role following the collapse of a company for which he was director.

The collapse of Stanley Group and the associated company Tallwood Holdings left creditors owed more than $13.3 million and was blamed, at the time, on the under-pricing of a Housing New Zealand project in Māngere.

Tallwood Holdings director Martin Udale took a leave of absence after the collapse of the two companies and Panuku announced his resignation late last week.

In September, Auckland Mayor Phil Goff said Udale's decision to take leave after the voluntary liquidation of the company was the right move in the circumstances.

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* Construction companies Tallwood, Stanley Group in liquidation

* Ebert contractors get some retention money after collapse, but not full amount**

Mayor Phil Goff launched his 2019 mayoral campaign at a venue in Papatoetoe, calling for a review of Council Controlled Agencies.

Goff said he expected a high standard of professionalism from public servants, especially those in senior positions or those appointed to governance roles.

When asked about Udale's resignation on Monday, Goff said only that he wanted to thank him for his time on the board.

Panuku chairwoman Adrienne Young-Cooper said Udale had left to focus on other interests.

'Martin has been an invaluable member of the Panuku board, bringing a wealth of property development experience,' she said.

'I thank him for his contribution to Panuku and wish him well for his future endeavours.'

Udale's resignation was effective from December 8.

According to liquidator Damien Grant from Waterstone Insolvency, Stanley Group's creditors were owed more than $10.6 million, while Tallwood's creditors were owed a total of $2.7 million.

Tallwood was established in 2018 as an off-site manufacturing base to complement the construction business of the Stanley group of companies.

It also became the contracting business for the Housing New Zealand projects.

It said the company's shareholders and directors sought advice in an attempt to save it in the days leading up to the voluntary liquidation, to no avail.