Liquidators are counting up the debts of Christchurch glass and plastic jar supplier Croftpak Limited as estimates climb to more than $914,000.
Unsecured creditors are unlikely to be repaid as the company is short on funds to cover debts to 39 creditors.
Rodgers Reidy insolvency practitioners Lynda Smart and Derek Ah Sam were appointed liquidators of the company by shareholder Gregory Croft on October 1 and put out a first liquidators report on October 8.
The company, formed in 2003, has ceased trading with the liquidators taking possession of assets to be sold.
Croft, who is the sole director, told them the company struggled because of historic costs from Covid-19 and was unable to recover afterwards.
‘‘All employee contracts were terminated upon the appointment of the liquidators,’’ they said in the report. ‘‘The liquidators have not yet determined the extent of preferential employee debt that remains outstanding for wage and holiday pay.’’
So far nine secured creditors have been identified with interests in vehicles, goods or personal property.
A likely ‘‘substantial’’ claim from the Inland Revenue (IRD) has yet to be received for outstanding payroll taxes.
The liquidators expect there will be no funds available for unsecured creditors, but recovery actions from insolvent transactions and other parties may bring in more funds.
Claims are expected to come from customers paying for goods without receiving them and further claims are likely to be received by trade creditors.
So far $634,000-plus has been received in claims from secured creditors, including $525,107 from Alternate Finance Ltd.
Yet to be confirmed are another five companies holding a legal claim on Croftpak property to secure a debt.
Trade and other creditor claims are estimated so far at more than $289,000, while liquidators will continue to investigate claims by employees and IRD.
Croftpak’s accounting system indicates about $16,500 is outstanding from debtors and it remains unknown how much of the $170,000 in book value for assets and inventory can be recovered.
Other liquidations include:
- Christchurch company Big Sky Food Limited was estimated by KPMG liquidators to owe creditors about $1.9m.
The company was placed in liquidation by the High Court in Christchurch on August 7 after an application by IRD seeking unpaid tax and unpaid business loan.
Big Sky Food operated as a food and dessert retailer, trading as Phat Philip, initially selling sundaes, bubble tea, hot dogs, milkshakes and ice creams and are believed to have later entered franchise agreements.
The shareholders are Wei Shen and Edward Millar.
The liquidators are waiting for an update from the Ministry of Business Innovation and Employment on a potential claim from improvement notices issued to the company by a labour inspector followed by legal proceedings.
Total assets have a book value of about $652,000 with the estimated $1.91m in total liabilities including about $119,000 from preferential creditors and $1.79m from unsecured creditors.
Liquidators Kristal Pihama and Luke Norman said in their first report on September 11 it was too early to tell how much could be repaid to 11 secured or preferential creditors and 10 known unsecured creditors.
- Christchurch company TGHP Limited which ran the pub and restaurant The Good Home Pegasus in Pegasus has folded owing more than $1.3m.
Founded in 2015, the company was placed in liquidation on September 24, with Grant Reynolds from Reynolds and Associates appointed liquidator by shareholders Andrew Laloli, Jessica Laloli and HSW Trustees Limited.
Laloli told the liquidator the company had become insolvent because of the impact of Covid-19 when the business had no or reduced income, economic conditions faced by the hospitality industry and historical tax debt.
The company attempted to sell its business, but before the sale could be completed, Lion NZ appointed receivers to manage a receivership sales process.
Lion NZ is owed $373,000, while IRD is owed about $932,000. The claims of employees and unsecured creditors have yet to be assessed.
- A company running a failed livestock export business on the West Coast owes more than $4.2m to creditors.
Donehue & Co Farming NZ Limited was put into liquidation by the High Court at Timaru on August 21.
PricewaterhouseCoopers insolvency practitioners Wendy Somerville and Malcolm Hollis were appointed liquidators and released their first report on October 6.
Donehue & Co Farming NZ Limited was found to have bank funds of $280,000 and a book value of $1.92m in inventory, but the director has advised there is no inventory left.
The total shortfall of $3.95m is after creditor claims of $4.22m and an expected surplus of $274,000 after the claims of preferential creditors are settled.
Donehue & Co Farming NZ Limited was a joint venture to graze and export livestock by Donehue Farms Ltd (DFL) and Accel Consulting Pty Limited under directors Matthew Donehue and Wei Wu.
Liquidators reported the company was structured with DFL providing the land, livestock management and machinery, and Accel funding the stock and freighting.
They had been advised the insolvency followed a breakdown in the shareholding relationship over stock and operating costs.
Singapore-based Allrita Supply Chain Management PTE Ltd pushed for the company go into liquidation over loan payments, and is among six known creditors, including both shareholders.
