The Terrace Bar Ltd was put into liquidation by its shareholders last week and the first liquidator’s report was released this week.
The bar traded as CBK, part of a chain of six restaurants across the country, having previously been called Terrace Bar for a long period. It was closed immediately after going into liquidation, but opened last weekend to service bookings for university graduation celebrations.
The shareholders of the company were John and Kim MacDonald.
Liquidator Emma Laing said in her report the company was incorporated in 2002 and operated a licensed restaurant and bar from leased premises in Dunedin for nearly 25 years.
The reason given for liquidation was a downturn in trade due to various reasons and an inability to meet tax obligations.
Company accounts indicated significant amounts had been advanced to the company by the shareholders, the report said.
Based on information to date the company assets consisted of the restaurant fit-out, chattels and stock located in the premises.
There were 13 secured creditors and the company’s bank, Bank of New Zealand, had a valid general security agreement over all company assets.
All employee entitlements were paid in full and Inland Revenue had filed a claim in liquidation with a preferential amount outstanding around GST and PAYE.
There were 26 unsecured creditors and the total amount owed was being confirmed.
In the statement of financial position at the date of liquidation, the debt to secured creditors to date totalled $139,987.37, while money owed to Inland Revenue was $231,333.07.
No amount was given for the unsecured creditors.
Unsecured creditors ranged from plumbers and cleaners to power companies.
Inland Revenue had initially applied to put The Terrace Bar Ltd into liquidation last month, but the High Court hearing did not go ahead with both parties still talking.
A statement of claim presented in the High Court said a total of $430,779.52 was owed by The Terrace Bar Ltd to Inland Revenue.
This was made up of $74,230.29 around GST, $356,489.23 around employer activities and $60 for income tax.
