Ticket Rocket lacking cash to pay creditors

Liquidators say early indications of affairs at Ticket Rocket show there will be no money to pay unsecured creditors.

The first report from liquidators Rodgers Reidy into the failed ticketing company came out on Friday and listed the names of the more than 1500 creditors owed more than $8 million.

Included in them are sporting organisations, councils and government departments and ministries such as the Ministry of Social Development and New Zealand Post.

Control of the ticketing company’s fixed assets is now with the receivers and once the receivership is completed the liquidators will sell any ‘‘residual assets,’’ the report said.

They will have to investigate further, but the liquidators said it was likely that there would not be any money remaining to pay unsecured creditors owed a combined $3.17 million.

An investigation would be carried out to check if any trading happened while the company was insolvent.

If there was, the liquidators may be able to claim more back for the unsecured creditors.

". . . recovery actions through insolvent transactions and actions against certain other parties may bring in additional funds," the report said.

The list of secured creditors the liquidators knew of included BNZ, Dove Electronics, Smartpay Rental Services, Windcave New Zealand and the Crusaders’ rugby organisation.

The liquidators said they would carry out a full investigation into Fortress Information Systems’ (the company behind Ticket Rocket) affairs but a release date for that is not given.

Last month, the first receivers’ report found Fortress Information Systems and its subsidiaries Dash Group, Dash Tickets and Dash Tickets Australia had $8 million in debts with a little less than $3 million in assets.

That figure did not include the value of many of the company’s assets, which were omitted from the report because the receiver was concerned they would inhibit their ability to sell them.

Those assets include debts owed to Ticket Rocket, property and equipment, intangible assets (such as brand value or trademarks) and other investments. 

 

 

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