Unsecured creditors caught up in the $57 million receivership
of Southern Cross Forest Products are owed almost $11
million, but it is unclear if funds will be available for
After confirmation yesterday from receiver KordaMentha that
all South Island staff will be made redundant, the extent of
payments to secured and unsecured creditors remains unknown.
Southern Cross was placed in receivership by ANZ in March.
The business owes ANZ $39 million and UDC Finance Ltd $7.2
In KordaMentha's first report, lodged earlier this month,
joint receiver Brendon Gibson said total assets had been
estimated at $57.74 million, including $26 million in
property, 10 properties which are mortgaged, plant and
Southern Cross' entire liabilities to secured and
preferential creditors was about $47.54 million.
Mr Gibson said when contacted yesterday the preferential
creditors, which included staff wages and redundancies, would
get paid in full.
But how much secured creditors might get could not be
determined until assets were sold, he said.
''Based on the information available to us, we believe that
the unsecured creditors are owed approximately $10.8
million,'' Mr Gibson said in his first report.
At least 34 secured creditors with claims are listed on the
Personal Property Securities Register against goods and
services provided to Southern Cross.
Mr Gibson said the only assets sold or realised so far were
inventory, ranging from logs through to finished timber
products, and debts owed to Southern Cross.
At the time of receivership, inventory was estimated to be
valued at $11.5 million, while debts from trade and other
receivables was estimated at $11.25 million.