Woollen Mill liquidation leaves creditors well short

The former Bruce Woollen Mill in Milton. PHOTO: GERARD O’BRIEN
The former Bruce Woollen Mill in Milton. PHOTO: GERARD O’BRIEN
The liquidation of the Bruce Woollen Mill in Milton has been completed.

In 2017, Insolvency Management Ltd principal Iain Nellies, of Dunedin, sold off the company’s plant and equipment, which allowed secured creditors to be paid $350,000 as well as nearly $400,000 for costs such as running expenses and receiver’s fees.

A shortfall of $4.3million remained owing to all creditors, Mr Nellies said in his final receiver’s report issued in 2017.

After a review of the mill’s books and records from when the company went into liquidation in March 2016, PricewaterhouseCoopers liquidator Malcolm Hollis started litigation against a secured creditor that had received some of the funds raised by the receiver.

"Ultimately, our process was successful in that we settled the litigation prior to court and agreed a settlement figure of $50,000," the final liquidators’ report said.

Once that was sorted out via two lump-sum payments of $40,000 and $10,000, the liquidator declared the process complete but no funds were "realised" for creditors left out of pocket.

There were four secured creditors with total claims of about $750,000.

Of the unsecured creditors, about 66 parties were left short of $882,042.

A public notice was lodged to give intention for Bruce Woollen Mill to be removed from the companies register.

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