Malcolm Burns, the sole director of Burns Group 2018 Ltd and Otago Excavation Ltd — both in liquidation — was declared bankrupt in the High Court at Dunedin in June last year.
Otago Excavation, a Mosgiel-based excavation and cartage company, went into liquidation in 2022 owing more than $3.3m and was also in receivership, which concluded in February this year.
The receivers’ final report estimated the total amount still owed to all creditors at the end of the receivership was $2,118,000.
The liquidators’ latest report for Burns Group 2018, released this week, estimated that company’s total liabilities were $2,099,372.
Despite the amount owing, the liquidators noted Mr Burns planned to apply to have his bankruptcy status removed.
‘‘Based on our discussions, we understand that the director intends to present a settlement plan to the official assignee to seek the removal of his bankruptcy status,’’ the report said.
‘‘The liquidators have submitted all available claims in the director’s bankruptcy for the amount owed to creditors in the liquidation.’’
An agreement had been entered into for the sale and purchase of Burns Group 2018’s shares in another of Mr Burns’ companies — Forest Distribution and Logistics Ltd (FDL) — but the purchaser had defaulted on the agreed terms.
‘‘As a current bankrupt, the director is precluded from being a director of a company.
‘‘FDL was removed from the register, due to the non-filing of annual returns.
‘‘However, it has since been reinstated and the director’s son is now the director of FDL and it is currently registered.’’
The director had contacted the liquidators to advise that his legal advisers would be in contact with a proposal regarding the FDL shares, but such a proposal was yet to be received, the report said.
‘‘The liquidators are now considering the option to liquidate FDL.’’
Steve Scoles estimated his company, which he said he sold about three years ago but was listed as a secured creditor, was owed $4000-$5000 by Burns Group 2018.
‘‘We’ve written it off.
‘‘We’re not going to get our money back.’’
The receivers’ report for Otago Excavation said residual debt owed to PFNZ Ltd, the secured party, was recovered in full through personal guarantees that were in place.
However, Kiwi Asset Finance Ltd was still owed a total of $1.73m plus accrued interests and costs — $294,000 related specifically to Otago Excavation and $1.44m in cross guarantees held.
During the receivership, 24 vehicles were sold for a total sale price of $426,000 along with 14 items of plant and equipment for a total of $12,000, excluding GST.
The Inland Revenue Department (IRD) submitted a preferential claim of $64,000 with respect to outstanding GST and PAYE deductions.
‘‘Based on asset realisations achieved during the receivership, there are no funds available for a distribution to preferential creditors.’’
All assets capable of commercial realisation had been realised and no funds were available for a distribution to unsecured creditors either, the report said.
Mr Burns is no stranger to company liquidations.
Another company of his, Titan Bulk Haulage Ltd, was placed into liquidation in May 2024 on the application of the IRD.
It has since been removed from the New Zealand Companies Register and a final report showed creditors were left out of pocket by more than $1m.
In 2006, his Southland transport company Rural Haulage Ltd was placed into liquidation by order of the High Court at Invercargill.
Burns Group 2018, Otago Excavation and Titan Bulk Haulage were all incorporated in 2018.
Receivership focuses on protecting the interests of secured creditors, while liquidation involves the winding up of a company and the distribution of assets to all creditors.
Mr Burns did not respond to a request for comment by deadline yesterday.
