Rogan McIndoe may owe $1.38m

Dunedin printer Rogan McIndoe - now in the hands of liquidators - may owe up to $1.38 million to mainly local businesses with up to 90 unsecured creditors unlikely to get as much as 20c in the dollar back, in a best-case scenario.

The company, which booked a loss of nearly $410,000 for the financial year to March, has seven secured creditors, 17 preferential creditors and 90 unsecured creditors, according to the first report filed by PricewaterhouseCoopers chartered accountant and liquidator Malcolm Hollis.

Last week the business was placed in voluntary liquidation by sole owners and directors, brothers Stephen and Gerard Rogan, with the loss of 18 jobs.

Mr Hollis said despite the loss of several major clients and downturn in business, the Rogans were able to continue operating with the support of secured lenders, but following losses and unreduced debt to those creditors the business was no longer viable and prompted the voluntary liquidation by the brothers.

He said for the financial year to March the printer lost $409,873.

The "shortfall" to creditors had in the past week been estimated at $1.38 million, but he emphasised that shortfall was dependent on liquidation costs, bad debts arising and the ultimate value from plant and equipment sales.

"Unfortunately, from the information currently available, it is unlikely there will be a return to unsecured creditors, and if so, it is not anticipated to exceed 20c in the dollar," Mr Hollis said.

Two of the company's six vehicles will go to auction, along with office furniture and smaller items of plant and equipment while major plant may be sold within the industry.

Mr Hollis was also considering the value of Rogan McIndoe's database as a saleable item.

"An investigation into the company will be carried out to determine if there are any other assets of which we are not aware, and if there are any other potential avenues for [financial] recovery," Mr Hollis said.

Staff have been paid their due wages, and redundancy calculations are being made.

Because of the cost involved, there would not be a meeting with creditors, who had until the end of October to make a claim, and it was anticipated the liquidation proceedings would be finalised by June next year.

•  Rogan Print opened in 1972 and in March 2002 merged with printer John McIndoe, which was established in 1893.

 

 

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