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Four of 10 clinics of Physiomed, in liquidation, owing more than $620,000, have been sold and liquidators hope more may yet be sold.
More than 40 unsecured creditors are likely to be left out of pocket.
Five clinics in the wider Dunedin area, four in Christchurch and one in Lower Hutt operated under the banner of Physiomed Ltd, which was placed in voluntary liquidation on July 9.
Physiomed's directors, David Murray and Adrian Hamill, who are also the majority shareholders, told liquidator Iain Nellies, of Insolvency Management, in Dunedin, that changes to ACC funding in recent years meant a reduction in revenues.
''We are continuing to trade the remaining clinics for a short time in the hope of arranging their sale,'' Mr Nellies said, in the liquidator's first report.
Four clinics had been sold - one each in Wellington and Christchurch and two in Dunedin - while negotiations were under way to sell four more.
Two in Christchurch were unable to be sold as they were in buildings to be demolished, Mr Nellies said. The assets of clinics for sale had been included in the sale agreements.
Remaining assets would be sold by auction.
While the total assets of Physiomed have not yet been determined, which will offset debts, the three secured creditors, including Westpac, are owed a total $200,722 and 14 preferential creditors are owed $419,822, including staff wages.
On the question of 41 unsecured creditors claims, there was no total yet available, but there was ''unlikely'' to be funds to pay them.
The three secured creditors have security interests registered against Physiomed, while employees and Inland Revenue claims, as preferential creditors, outweigh claims of unsecured creditors.
''It's anticipated this [sale] process will be concluded very shortly,'' Mr Nellies said.
Physiomed was first incorporated in May 1998, Companies Office records show.