It has also emerged the owner of the company took $1.53m from company funds and put the money into his shareholder account.
Dart Engineering was put into liquidation early last month after Inland Revenue applied for liquidation over a tax debt of $1.16m. Owner and director Regan Williamson is overseas and is yet to talk to liquidators.
The first liquidation report was released yesterday. The company has more sizable debts than just the amount owed to Inland Revenue.
The report was carried out by liquidators Malcolm Hollis and Wendy Somerville.
The liquidators said in the report they had been advised the primary causes of insolvency were issues over trading losses, cash-flow constraints and creditor pressures.
The company was set up in Queenstown in 2006 by Mr Williamson, who remained the company’s owner and sole director. Around 2020, the company opened a branch in Dunedin in Kaikorai Valley Rd and the family moved to Dunedin.
Mr Williamson is believed to be now living in Canada. His wife, who is Canadian, left with their three children for Alberta, Canada, late last year and she was joined by her husband before Christmas. He had told staff he would be back, but never returned.
In the report, the liquidators said they had been in touch with Mr Williamson — but had not talked to him — and he had filled out the standard liquidation questionnaire and also provided the most recent bank statements. The liquidators said they would be arranging an interview with him in coming weeks to discuss company affairs prior to liquidation.
The statement of affairs in the report said a secured creditor held security over 39 vehicles and they had all been recovered.
An initial sale of the business was pursued, but the proposed buyer withdrew. An auction process was initiated and the sale of the company’s assets had started at one of the three sites and should be concluded by the end of next month.
The report said it had been advised the company had built two jetboats for a third party without payment. The company had a specialist 7.4m turbine jetboat hull, which is about 80% complete, at the Dunedin site. It will be auctioned.
Mr Williamson was a top-ranked jetboat marathon driver and had placed in world championships.
A financial statement on March 31 last year showed an overdrawn shareholder current account of $1,526,759.
The statement of affairs showed preferential creditors were owed $2,322,316, while unsecured creditors were owed $1,106,080. Secured creditors were owed $1,254,311 and the shortfall to specifically secured creditors was at $691,166. The total amount was $5,373,873.
There were 27 secured creditors and 114 unsecured creditors.
Inland Revenue has increased its claim to $1,462,199, made up of outstanding GST, PAYE and employee deductions.
There is also a subrogation claim for funds advanced to cover wages, totalling $745,663. The liquidators said they were looking into this claim.
The company employed 32 staff when it was liquidated. All lost their jobs and there remains $111,175 in wages and holiday pay outstanding to employees.
Mr Williamson is believed to have set up a steel fabrication business in the city of Red Deer in central Alberta.
