Secured creditors caught up in the receivership and liquidation of Dunedin engineering company DC Ross appear unlikely to see much of the more than $18million they are owed.
DC Ross specialised in high-quality fine blanking tool parts and was placed in receivership by majority shareholder the McConnon family in September 2016, owing almost $19million, in part due to a downturn in the Australian automotive industry.
It was placed in liquidation on the petition of Fletcher Steel in February 2017, and bought by Scott Technology in June for $375,000.
With regard to the receivership, the McConnon family trust and BNZ are secured creditors, owed respectively $13.7million and $4.3million.
In a six-monthly report by PwC, receiver Malcolm Hollis said several parties had shown interest in buying DC Ross and a sale settlement was under way with an unnamed overseas buyer, when a higher offer was made by Scott.
Scott's offer was the best received, and also retained employment of all staff, he said.
During the receivership, three of the 12 staff resigned and the balance were re-employed by Scott Technology.
Shares owned by DC Ross in a Melbourne metal treatment plant were sold to other shareholders, netting $A50,000.
After making payments, there was $269,000 cash, as at September 14.
Mr Hollis said that the first secured creditor was the BNZ, owed $4.3 million, while the second was the McConnon's Aorangi Laboratories, which was owed $13.7 million.
Mr Hollis' report said: ''Based on the realisations to date there will be a significant shortfall to the secured creditor and therefore no funds available for a distribution to unsecured creditors.''
Mr Hollis said he was in negotiations with third secured creditor Fletcher Steel, owed $609,670, over its ''purchase money security interest'' claim.
