Armstrong Downes Collapse: Directors Continue Operating Despite $30M Debt
26.01.2025
ARTICLE
The collapse of Armstrong Downes Commercial 2012 Limited, a once-prominent construction management company in the Wellington region, has left a trail of financial devastation. Following the voluntary liquidation of the company on May 2, 2022, and the release of the December 2024 liquidation report, concerns have emerged regarding the actions of its directors, Simon Paul Taylor and Tony Marshall Robert Doile, who continue to operate other businesses in New Zealand despite leaving more than $30 million in unpaid debts.
Armstrong Downes, incorporated in 2012, was responsible for medium to large-scale residential and commercial construction projects. At the time of its collapse, the company had eight active projects, several of which were plagued by substantial losses due to fixed-price contracts, supply chain disruptions, labor shortages, and unforeseen technical complications. Despite seeking professional advice and attempting to restructure the contracts in early 2022, the directors failed to save the company from insolvency.
According to the December 2024 liquidation report, only $3.7 million has been distributed to creditors so far—a mere fraction of the $30.5 million owed to 204 unsecured creditors. Secured creditors filed claims totaling $670,599, while no preferential claims had been lodged by the report's release. Liquidators found no tangible assets within the company, with recoveries limited to receivables and cash on hand at the time of liquidation.
The liquidators conducted extensive investigations, which included securing company records, reviewing contracts, and interviewing Simon Paul Taylor and Tony Marshall Robert Doile under oath. Legal actions were filed in the High Court to recover funds, though a lack of litigation funding limited the scope of these efforts. Notably, two creditors, Bligh Trustees Limited and High Street Holdings 2020 Limited, reduced their claims to allow for larger distributions to other creditors.
Despite the financial fallout affecting suppliers, subcontractors, and local businesses, both Simon Paul Taylor and Tony Marshall Robert Doile remain active in New Zealand’s business sector. This has sparked criticism and concern about the ethical implications of directors moving on from a failed company while leaving substantial debts unpaid. Their continued operations raise questions about accountability and regulatory oversight under New Zealand’s Companies Act 1993, which mandates that directors act in the best interests of their companies and creditors.
With the liquidation process expected to conclude within the next 12 months, further distributions to creditors are anticipated, though the prospect of recovering the full $30.5 million appears slim. The collapse of Armstrong Downes serves as a cautionary tale, highlighting the fragility of the construction industry and the need for stronger safeguards to ensure directors are held accountable for financial mismanagement.
As creditors and industry stakeholders await the final outcome, the actions of Simon Paul Taylor and Tony Marshall Robert Doile remain under intense scrutiny. The legacy of Armstrong Downes may ultimately become a stark example of the fine line between business ambition and financial responsibility.