Trucks, trailers, forklifts among repossessed machinery

Burns Group Limited’s newly finished yard in Mosgiel sits empty on Wednesday morning after its...
Burns Group Limited’s newly finished yard in Mosgiel sits empty on Wednesday morning after its assets were repossessed in a mortgagee agreement. PHOTO: PETER MCINTOSH
Two Mosgiel trucking companies have had large amounts of machinery repossessed after breaching loan conditions.

A notice of entry into possession of mortgaged goods was filed by Kiwi Asset Finance Limited against Otago Excavation Ltd and Titan Bulk Haulage Ltd on June 18.

Kiwi Asset Finance is a wholly owned subsidiary of Kiwibank.

An owner of the trucking companies blamed the impact of Covid-19 for their troubles and said the recovery had taken longer than expected.

The assets include multiple trucks, trailers, forklifts, utes and other machinery.

The total value of the assets is unknown but is likely to be more than $1million.

Yesterday, the Companies Office website showed both of the businesses were actively trading and owned by Burns Group 2018 Ltd.

The notice said the finance company had taken the machinery after the companies failed to comply with mortgage terms.

The two mortgages were dated to December 2019.

The businesses operate in the construction and transport industry across the country.

Alongside Otago Excavation and Titan Bulk Haulage, Burns Group also runs Forest Distribution and Logistics Ltd.

That business is also actively trading, and not affected by the repossession.

Burns Group is owned by Malcolm Burns and Leonard Cheng, both of Dunedin — they own 50% each.

In a statement provided to the Otago Daily Times, Mr Burns said the Covid-19 pandemic had significantly affected the new companies,

and the post-Covid-19 recovery had taken longer than expected.

"We are actively working through the solution with Kiwi Asset Finance for the return of these assets," he said.

The company was supporting the employees through the issue and did not see it affecting its ability to operate, Mr Burns said.

Last year, Burns Group took $117,160 in the wage subsidy and Otago Excavation took $94,899.60.

Titan Bulk Haulage did not take any.

The solicitor for the mortgagee, Crispin Vinnell, said the matters between his client and its customers were confidential and therefore he could not comment.

riley.kennedy@odt.co.nz

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