Grant Thornton released its third report to shareholders and creditors of SolarZero and its associated companies yesterday.
The liquidators noted that inventory held at seven sites across Christchurch, Wanaka, Hamilton and Auckland had now all been collected and sold via online auctions, realising a total of $1,023,966.
Meanwhile, fixed assets had been sold for $41,102 and debtor collection had clawed back $9654, with further recovery actions underway.
“As previously reported, a significant receivable balance on the SZL [SolarZero Ltd] balance sheet has been identified and the relevant party contacted.
“The receivable is being challenged by the relevant party and the liquidators continue to assess legal recovery options.”
Revenue of $280,441 was earned during the period from a range of customers, including school contracts, while tax recoveries from the Government’s research and development incentive tax credit brought in $1.226m.
The liquidators said its asset realisation process was now complete with a partial distribution made to creditors, which was not included in the report as it was outside the reporting period.
The sale of SolarZero’s intellectual property, goodwill and brand had also been completed, while it had reached heads of terms to sell its four school contracts.
The recovery of a range of intercompany loans within the group of companies totalling $25.37m was contingent on the sale of the SolarZero business and its assets.
“It is not yet known if there will be recoveries from intercompany debts,” the liquidators said.
The Grant Thornton report noted a full investigation into the collapse of the group was still underway, looking at its trading performance, actions of directors and management and voidable and preferential transactions prior to liquidation.
“We have now identified a number of possible claims. Should any creditor wish to provide funding, we welcome them to contact the liquidators and their staff to explore possible funding options.”
Creditor claims
The liquidators initially identified 17 secured creditors but after contacting them, some had either removed their claims, uplifted their assets or reached a settlement.
Three creditors with five security interests had filed claims totalling $2.9m.
The Public Trust, as the trustee of two special purpose vehicles, had also filed claims totalling $979m, although the liquidators had yet to adjudicate those claims.
“The claims are complex. The liquidators are yet to review, admit or determine them. The totals … are likely to include an element of double counting. Further work is ongoing on assessing the claims filed by Public Trust and updates will be provided in due course.”
The group employed 173 workers at the time of the liquidation who had preferential claims worth $1,796,880 for unpaid holiday pay.
During the reporting period, $1,174,091 had been paid out to 165 workers in full settlement of their claims.
But unsecured creditors – who rank at the bottom of the priority list for repayment – remain high, with 300 claims received so far totalling $23.97m.
Money owed to liquidators
The liquidators had been paid $51,517 during the reporting period but there was still $500,808 which had been billed for but not paid and a further $229k which was unbilled.
NZ Green Investment Finance, a “green investment bank” created by the previous Government to fund environmentally-friendly businesses, had advanced $314,000 to cover liquidator fees and legal expenses.
Before SolarZero went into liquidation, NZGIF made a $145m debt facility available to SolarZero, as well as facilitating $220m in credit lines from international private lenders First Sentier Investors, Natixis Investment Managers and Societe Generale.
Of that $145m facility, $115m had been drawn down at the time of the liquidation.
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