Christchurch-registered renewable fuel company NXT Fuels has folded owing nearly $3.5 million after shareholders refused to prop up another loss.
The company was formed in October 2005, developing projects converting initially algae and then biomass feed stocks into bio-energy and carbon efficient products.
Shareholders who had supported the company to continue operating finally had enough and brought in RC Restructuring insolvency practitioner Rhys Cain as a liquidator on June 16.
He released an initial liquidation report to creditors and shareholders on June 24.
Mr Cain said investment activity was wound down over the last few years and its only asset by the start of this year was an investment and funds held in its bank accounts.
The company sold an investment in W2SV Limited in the period leading up to the company’s liquidation, he said.
NXT Fuels directors are Nicholas Gerritsen and Roger Gower.
Among the top five shareholders are Pure Power Global Limited with a 14% stake, Rutherford Innovation Holdings Limited (12%), the estate of Peter Barrie Leay (10%), Montreal Trustees 2017 Limited & Mr Gerritsen (9%) and former Christchurch mayor from 1989 to 1998 Vicki Buck and Lindsay Lloyd (6%).
Mr Cain said the company had been relying on investment from shareholders to fund ongoing operations through loans and convertible notes.
‘‘The shareholders decided that they didn’t wish to invest further funds in the company and decided to appoint a liquidator to wind the company up. An investigation into the company will be carried out to determine if there are any other assets of which we are not currently aware, and if there are, any other potential avenues for recoveries.’’
The liquidator is not expecting to receive a preferential claim from Inland Revenue, or other parties.
Mr Cain said it was too early to indicate if funds would be available for unsecured creditors.
Listed assets so far include $18,030 in a bank account against a total shortfall to creditors of $3,497,977.
On its website NXT Fuels said the company was established to focus on the conversion of biomass feed stocks to energy and carbon efficient products.
Pioneering work in projects and collaborations was initially made with Boeing, UOP, GTI, and Shell Renewables.
The website pointed to W2SV, described as committed to transforming the future through the innovative use of biochar, turning waste streams into valuable bio-goods.
Biochar is a carbon-rich material with the ‘‘power’’ to sequester carbon, improve soil health, reduce waste, and purify water.
In a 2024 annual report NXT Fuels made a loss of just under $379,000 for the year to March on the back of another loss in 2023.
The company disclosed it was not generating revenue after searching for investment opportunities the past few years.
Unsecured advances of $335,325 were made by directors and shareholders including just over $189,000 by Mr Gerritsen.
NXT Fuels was formerly known as Aquaflow Bionomic Corporation, a Marlborough-based biofuel developer.
In 2006 it announced itself as the first in the world to commercially produce bio-diesel fuel from algae sourced from Marlborough sewerage ponds.
