High Court Proceedings Target Four Former Directors Over SolarZero Collapse
Liquidators from Grant Thornton New Zealand have initiated High Court proceedings against four former directors of collapsed residential solar firm solarZero, trading as Lunar Infinity Limited. Filed on behalf of the company, the legal action alleges breaches of the Companies Act that left creditors facing an estimated $476 million in potential losses following the late 2024 failure.
Financial Takeaways From the Lunar Infinity Liquidation
- Total Creditor Claims: Unadjudicated claims stand at an estimated $476 million.
- Statutory Allegations: Liquidators Adele Hicks and Malcolm Moore allege violations of sections 135, 136, and 137 of the Companies Act 1993, concerning reckless trading and obligations the firm could not meet.
Grant Thornton Liquidators Pursue Recovery Under Companies Act
The legal action focuses on decisions made by the board prior to the company entering liquidation in November 2024. Liquidators Adele Hicks and Malcolm Moore of Grant Thornton New Zealand stated that the proceedings target four former directors for allegedly breaching duties of care, diligence, and skill, alongside reckless trading provisions. Companies Office records show that the directors of Lunar Infinity Limited at the time of liquidation were Andrew Booth, Simon McIver, Charles Rid and Valerie Speth.
The legal filing follows an extensive investigation into the company’s financial position, governance records, and related transactions. The defendants have not yet had the allegations tested in court and remain entitled to respond.
Supply Chain Fallout and Subcontractor Impact
The collapse of the rooftop solar provider reverberated through local supply chains and installation networks. Installation contractor and Bright Light Electrical owner Josh Martin described the liquidation as life-changing after his business relied almost entirely on SolarZero workflow, forcing him to make nine apprentices redundant. Government-backed lender NZ Green Investment Finance holds a substantial exposure in the structure through its $145 million loan facility.
Prior to the liquidation, SolarZero had been acquired by multinational asset manager BlackRock in 2020 for $110 million. BlackRock injected an additional $145 million before pulling financial support in late November 2024 when sales projections fell short.
| Metric / Entity | Details |
|---|---|
| Ultimate Parent at Collapse | BlackRock Inc |
| Estimated Creditor Claims | $476 million |
| Government Debt Exposure | $145 million (NZ Green Investment Finance) |
| Target of High Court Action | Four former directors of Lunar Infinity Limited |
Distribution of Recovered Funds Under Schedule 7
Any funds recovered through the High Court proceedings will be distributed to stakeholders in accordance with Schedule 7 of the Companies Act 1993. The company provided rooftop solar and battery systems under long-term subscription-style contracts. The liquidators’ reports indicate that 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.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
