The liquidators of collapsed solar power company solarZero have launched High Court proceedings against four former directors, alleging decisions made before the company's collapse left creditors facing significant losses.
Liquidators Adele Hicks and Malcolm Moore, of Grant Thornton New Zealand, said proceedings had been filed against four former directors of Lunar Infinity Limited, formerly known as solarZero.
The liquidators allege the directors breached duties under sections 135, 136 and 137 of the Companies Act, covering reckless trading, incurring obligations a company cannot meet, and directors' duties of care, diligence and skill.
The liquidators say the claims relate to decisions made before the company was placed into liquidation in November 2024.
"The company benefited from significant public and private investment and left creditors with substantial losses, so it's important to pursue those claims and maximise any potential recovery available," Hicks said.
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The liquidators said they had undertaken an extensive investigation of the company's financial position, governance records, financing arrangements and related transactions before deciding to commence proceedings.
The allegations have not been tested in court, and the defendants are entitled to respond.
The liquidators have not identified the four former directors named in the proceedings.
When the company went into liquidation, Companies Office records show the directors of Lunar Infinity Limited, formerly solarZero, were Andrew Booth, Simon McIver, Charles Rid and Valerie Speth.
SolarZero was one of New Zealand's largest residential solar businesses, providing rooftop solar and battery systems under long-term subscription-style contracts. The company collapsed in late 2024.
The liquidators' most recent report identified BlackRock Inc, the world's largest asset manager, as the ultimate parent of the group at the time of the collapse.
It said investigations into the collapse included reviewing the group's trading performance, solvency, the actions of directors and management, and transactions that might produce recoveries for creditors.
It comes after the collapse of SolarZero, Business Correspondent Katie Bradford reports. (Source: 1News)
The report said a number of potential claims had been identified.
The liquidators said creditors yet to be adjudicated are owed an estimated $476 million. Any money recovered through the proceedings would be distributed in accordance with the Companies Act.
Companies Office records show the company was known as Lunar Infinity Limited at the time the proceedings were filed.
Government-owned NZ Green Investment Finance made a $145 million loan to SolarZero.
"Following an extensive investigation into the company's financial position, governance records, financing arrangements and related transactions, we have concluded it is appropriate to commence proceedings.
"The proceedings have been filed on behalf of the company and if successful, any funds recovered will be allocated to stakeholders in accordance with schedule 7 of the Companies Act 1993."
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