Assets of helicopter tour company sold for $125,000

A Queenstown helicopter company, placed in liquidation in February, has had its assets - including its name - sold for $125,000.

Heli Tours Ltd, established in September 2009, was put into liquidation on February 12 owing more than $2.1million.

In his second report, liquidator Duncan Fea said Heli Tours traded as a helicopter tour operator from Queenstown Airport.

Mr Fea confirmed on his appointment the benefits of continuing to trade did not outweigh the costs and risks and took control of all assets on the date of liquidation.

The company's fixed and intangible assets were subject to a secured debt and were sold.

Net realisations, totalling about $217,838, had since been paid to secured creditor Bank of New Zealand.

''The sale included the company's trade name and brand 'Heli Tours' and consequently the liquidator changed the company's name to 'ZK Tours Ltd' on 18 March, 2019.''

Mr Fea said a review of the company's books identified ''an amount'' owed by company shareholders Paul Mitchell, his wife Katherine Mitchell, of Queenstown, and John Mitchell, of Clinton, relating to an overdrawn account.

''The shareholders also advanced amounts to the company more than amounts drawn.

''The shareholders can claim in the liquidation as unsecured creditors for amounts owing to them.''

Mr Fea said more information on the shareholders' financial position had been sought.

''At present, our view is that the maximum potential recovery (if any) would result in a distribution of less than 3c on the dollar to unsecured creditors.''

Mr Fea's initial investigation of Heli Tours' financial position in February showed the company had total liabilities of $2,138,000 - $222,000 owing to secured creditors, $69,000 for preferential creditors, $491,000 for unsecured creditors and $1,356,000 for related-party creditors.

The bank balance at August 12 was $15,998.

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