The former owner of a defunct Otago engineering firm who fled New Zealand and left his shareholder account more than $1.5 million overdrawn has disputed he needs to pay it all back.

Liquidators are seeking legal advice about how the money might be retrieved.

Dart Engineering was put into liquidation in March this year, owing nearly $5.4m to creditors.

By then, company director and sole shareholder Regan Maurice Williamson had left for Canada.

One of the liquidators, Malcolm Hollis, made mention in March of a shareholder current account overdrawn by $1,526,759.

The liquidators’ first six-monthly report has an update about that.

Mr Hollis said they issued a formal letter to the director, “seeking explanations for certain transactions and requesting repayment of the overdrawn shareholder current account”.

Mr Williamson disputed the liquidators’ position, he said.

“As a result, we are seeking legal advice regarding the available recovery options.”

Deeper in the report, the liquidators said the amount was in dispute.

Dart Engineering was set up in Queenstown in 2006 by Mr Williamson.

About 2020, the company opened a branch in Dunedin in Kaikorai Valley Rd and the family moved to Dunedin.

The liquidators initially sought to sell the business, but the proposed buyer  withdrew.

The company employed 32 staff on the date of liquidation and their employment was terminated.

Auctions were held at the company’s trading sites in Dunedin and Queenstown.

This resulted in the sale of $796,792 in physical assets, Mr Hollis said.

In March, the liquidators said they were advised $111,175 was still owed to former employees for wages and holiday pay.

The latest report was employees would receive a distribution adding up to $57,989.23 for outstanding wages and holiday pay.

Inland Revenue had a claim for more than $1.4m.

The liquidators had arranged a distribution to Inland Revenue of $64,943.74.

The updated statement of affairs said unsecured creditors were owed $1,371,329.