Johnstone told the Gisborne Herald the liquidation was not complex.
“The liquidation took longer than initially anticipated due to the softer market for logging equipment and a surplus of equipment across the market.”
She confirmed that the creditors at the date of liquidation claimed a total of $7.1m and close to $3m was paid, including proceeds received outside the liquidation for secured creditors who had repossessed assets.
The Inland Revenue Department claimed $809,044 as a preferential creditor, secured creditors claimed $5,648,095 and unsecured creditors claimed $671,067 for a total claims figure of $7,128,206, according to the final liquidator’s report.
The total value paid to creditors was $2,998,973, with $101,379 going to the preferential creditor and the rest to the secured creditors.
The total fee paid to the liquidator, including allowances and other benefits, was $323,563.00.
The first liquidator’s report said the directors decided to place the company into liquidation following a period of difficult trading conditions due to two years of extreme weather events in the Gisborne area impacting the forestry market, volatility in the forestry products market and rising prices for fuel, wages and salaries.
“These factors followed a significant increase in plant and machinery investment and meant that the company could not produce the necessary profitability to sustain its operations,” the report reads.
A list of more than 60 creditors was published with the liquidator’s reports. Local businesses listed as creditors included:
A F ThompsonAB EquipmentAdamson LoggingAP Plant & MachineryBay Trade SuppliesColvinsEastland ToyotaGisborne AutoelectricsGisborne EngineeringTyre General
Other notable businesses listed as creditors included:
ASB BankAllied PetroleumEroadHeartland Bank LtdWarehouse StationeryWaste ManagementZ Energy Ltd