Changes to how insurance work was allocated led to the insolvency of JNK Partnership Limited, trading as Alexandra Panelbeaters, a liquidators’ first report says.
The company was put into liquidation on March 14 and had estimated debts of about $275,000, the report by Trevor Laing & Associates Ltd said.
The report said the company had operated as a panelbeating and car painting business in Alexandra. The business was purchased about seven years ago by the current shareholders, Jeroen Mathijn and Nova Jane Knippers and had until recently operated "marginally profitably".
Changes to how insurance company work was allocated were implemented which resulted in a severe downtown of work available to Alexandra Panelbeaters, as it was not made a preferred supplier.
The firm’s director, Mr Knippers, said as a result the business, "in its current form and carrying its current debt", had become insolvent and unable to continue without serious risk of the debt burden increasing.
The company’s assets consisted of the company plant located in its leased premises, and a small amount of stock. The value of those had not been established. A statement of financial position estimated the company’s assets as also being vehicles worth $20,000 and debtors of $45,000, although that information had not been verified, the liquidators said.
The statement of financial position estimated JNK Partnership’s total liabilities at $275,000. This was comprised of $50,000 to secured creditors, $20,000 to the IRD, $20,000 in preferential wages and holiday pay, a $100,000 unsecured loan, and $85,000 to unsecured creditors. It was too early to know if there would be funds to pay a dividend to unsecured creditors, the report said.
The company’s plant would be independently valued.
Anyone wishing to be included as a creditor in the liquidation must file a claim form with the liquidators by April 28.
Creditors who wish to make a reservation of title claim against any assets of the company must advise the liquidators and provide appropriate supporting documentation by March 31.
The Otago Daily Times was unable to contact the Knippers.
