Corsa International ceased trading following the appointment of liquidators and all its retail stores have closed.
According to Hicks and Jeffreys’ first liquidators’ report, the pair have entered into an agreement to sell the company’s stock at all sites and fixed assets at two sites.
The pair also identified two motor vehicles not recorded in the company’s books, and have since confirmed that no security interests were registered over them. The vehicles will be sold by auction.
Stock at two of the company’s sites was excluded from the sale and will also be sold by auction.
Hicks and Jeffreys froze the company’s bank accounts and cancelled all its credit cards on appointment, and found a $250,313 net overdraft in the company’s bank account.
There was also a $25,000 term deposit over which the bank has security and intends to offset against the overdraft.
A further $3709 was recovered in cash from the retail stores’ tills on appointment.
Hicks and Jeffreys said the company’s records also indicated about $25,000 of trade receivables due.
The company had six parties with registered security interests, including ANZ Bank and Uncle Bills (Australia).
The company’s records indicated three secured creditors were owed a combined $757,781.
Most is owed to ANZ Bank, with $539,000 owed under a general security agreement, including a potential contingent claim for $313,786 for rental bond guarantees.
Other secured creditors were owed $164,130, with $54,551 owed in hire purchase liabilities.
Records found 35 preferential claims against the company totalling $734,623.
This includes 34 employee preferential claims for outstanding wages and entitlements, totalling $124,598. The liquidators will contact these employees to determine the preferential and unsecured portions of their claims.
Inland Revenue (IR) is owed about $610,025 under a preferential claim.
Hicks and Jeffreys anticipate there will be sufficient funds to enable a distribution to employees’ preferential claims, but said it was too early to estimate the amount for remaining preferential claims.
The company’s records indicated 77 unsecured creditors were owed a combined $3.68 million.
Breaking this down, 44 were trade creditors owed $1.14m, the shareholders current account of $2.03m, employee unsecured entitlements of $171,974, rental deposits arising from management agreements of $105,000, and other liabilities of $40,004.
This also included the unsecured portion of IR’s claim of $214,451, representing outstanding income tax, interest and penalties.
Hicks and Jeffreys said it was unknown whether any funds would be available for unsecured creditors.
Corsa International owes creditors of all classes a combined preliminary total of $5.17m.
Hicks and Jeffreys could not estimate the date of completion of the liquidation.
Cho is also the sole director and shareholder of two other companies, Fastfuel Foods and Aye NZ, the latter a sister company to the 2Cheap and Enjoy brands.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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