A downturn in demand, a lack of profitability and “differing views” between shareholders have led to a Central Otago grape-growing business going into liquidation owing at least $560,000. Mount Dunstan Estates Ltd and its associated company, Mount Dunstan Harvesting Ltd, were both placed into liquidation by shareholder resolution late last month. The former traded as Mount Dunstan Estates, a 56ha Pinot Noir vineyard in Alexandra. The liquidator’s first reports, released last week, attributed the liquidation of both companies to “downturn in demand for grapes, lack of profitability and differing views of shareholders”. While the total deficit was to be established, the report for Mount Dunstan Estates Ltd estimated the company, at this stage, had liabilities including $560,000 to secured creditors and $12,000 in preferential employee claims. “The company has experienced a downturn in profitability, the solvency of the company became uncertain and the shareholders made the decision to appoint a liquidator to independently manage the wind down of the company,” the report said. “While there is the potential for most, if not all, creditors to be paid from the realisation of company assets, the final outcome of the liquidation will be dependent on the values that are obtained. “It appears that the majority of the unsecured creditors are related parties.” The liquidator was aware of 19 unsecured creditors. The company’s assets comprised the funds in its trading account, vehicles and equipment, estimated receivables of $628,000, bulk wine stock and an intercompany advance of $790,000. The report also listed unpaid share capital of $179,000. Mount Dunstan Harvesting Ltd had assets including the funds in its trading account, a parcel of land planted in grape vines and grape harvesting equipment. The directors of both companies are listed as Maurice Davies and Rory McLellan. Both were approached for comment and neither responded by deadline on Monday. tim.scott@odt.co.nz
