A liquidator has called in private investigators and lawyers to recover assets seized and "hidden" by a creditor.
True Line Builders Ltd, a residential construction company with branches in Queenstown, Auckland and Great Barrier Island, went into voluntary liquidation on July 25.
Its sole director is Jaden Melgren, formerly of Queenstown.
Prior to liquidation, its two shareholders were Mr Melgren and his wife, Jackie.
The companies website shows Mrs Melgren was removed as a shareholder on July 24.
The first report from liquidator Imran Kamal shows True Line owes $671,417. The estimated shortfall is unknown.
Mr Kamal told the Otago Daily Times that before his appointment a container used to store tools for a Queenstown building site was seized by a creditor who claimed lien over them — a "frustrating" and "unusual" situation.
"I might have to take ... legal action, which will be an expensive exercise, which will not help the other creditors," he said.
True Line, incorporated in July 2014, had been "doing pretty good" until Auckland company AKL Construction Ltd, previously B7 Construction Ltd, went into liquidation on March 31, Mr Kamal said.
True Line took a "full and final" settlement payment of $50,000 from B7 in March but had to write off more than $200,000 it was owed.
The report said another True Line debtor disputed a payment of almost $90,000 relating to "variations/costings".
Mr Melgren said he was "gutted" about the company’s collapse.
"It’s been the crappiest month of my life. It was never the intention to be in this position and I suppose when we did so much good by so many people for quite a few years and then you end up in this position — it’s soul-destroying."
While he intended to "just work through it" and make up the losses, he realised in the "eleventh hour ... I had a major problem".
"It was my full intention to go into voluntary liquidation to liquidate assets and pay creditors. It’s really hard to go through that process when people are stealing."
Mr Melgren said personal and company assets estimated to be worth about $80,000 had been taken without his consent.
"I’m absolutely livid.
"If the assets are not returned, then it is our intention to use the full discretion of the law to have those assets and personal items returned," he said.
At the time of liquidation, the company had contracts to construct four residential properties, two of those in Queenstown.
One was nearing completion and had its code of compliance ‘‘conducted’’, but the owner had to pay subcontractors and suppliers to finish the build.
The other was partway through the build, with framing, windows and roofing erected, but no work had been done on it for "a couple of months" because True Line did not have the means to obtain materials or pay for sub-trades.
Mr Melgren confirmed he incorporated a new company, Melcon Ltd, on August 1.
He was the sole director and shareholder of that company, which was not yet trading but would be a "labour hire setup" for the commercial sector in Auckland.
