Failed firm short of assets

Another Steve Rout company failure, another allegation of assets already sold.

The Rout-associated Blue 9 Ltd - a Christchurch-registered construction firm whose work included Dunedin's Forsyth Barr Stadium and a Dunedin City Council roading contract - stopped trading in January because it could not pay its debts.

A report issued earlier this week by liquidators Wayne Deuchrass and Iain Nellies, of Insolvency Management, said the company owed $2.28 million, $1.72 million of which was owed to secured creditors UDC Finance, Agco Finance, Smartpay Rental Services and TMC Trailers.

''The liquidators have been advised that all of the company assets have been sold prior to the date of the liquidation,'' the report says.

Unsecured creditors include Mr Rout's failed company Steve Rout Contracting, which was placed in receivership in May 2011 amid creditor allegations its assets, including nearly 30 earthmoving and utility vehicles, were transferred to Blue 9.

The liquidators said it was unlikely unsecured creditors - owed $687,000 - would get any money.

The report says Mr Rout, formerly of Queenstown, is now based in the Philippines.

Mr Rout is listed as Blue 9's director and shareholder, the latter with wife Jane as trustees of The Poutama Trust.

 -by David Williams

david.williams@odt.co.nz