Second company in liquidation

Glenn Alexander
Glenn Alexander
A second company of Dunedin businessman Glenn Alexander has been placed in liquidation, following the collapse of bedding manufacturer Ellis Fibre.

As one of the majority shareholders, Mr Alexander put his housing insulation company Technobond into liquidation last week with Dunedin receivers Trevor Laing & Associates.

Technobond operated beside Ellis Fibre in Kaikorai Valley Rd in Dunedin, and initially was not drawn into the receivership and subsequent liquidation of Ellis Fibre.

Ellis Fibre's liquidation appears to be headed to a dismantling of the 20-year-old company, despite KPMG's efforts to find a buyer.

The KPMG report did not outline the total extent of Ellis Fibre's debt, nor tally up the total assets which might offset the debt.

KPMG said the employees' preferential claims of about $58,000 ``will be paid in full'', but noted Inland Revenue, another preferential claimant, was owed $136,130 for overdue PAYE, GST and other deductions.

ASB bank and preferential creditors were likely to face a shortfall in what they were owed by Ellis Fibre, while it was ``unlikely'' there would be funds available to pay unsecured creditors, KPMG's report said.

Ellis Fibre's assets were listed as stock and unfinished goods, intellectual property, plant and equipment and vehicles, plus customer payments owed to Ellis.

Mr Alexander has a third company, Novadown Ltd, which is still registered with the Companies Office and is not in receivership.

In KPMG's report on Ellis Fibre, receiver Andrew Hawkes said Novadown operated out of the same Kaikorai Valley site and was an ``associated entity'' and a guarantor over one piece of plant and equipment used by Ellis Fibre.

 

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