The remaining $469,000 is now owed to Crown Regional Holdings Ltd (CRHL) the holding company for MBIE’s investments related to the regions.
An application by preferential creditor Inland Revenue, previously owed close to $1m, pushed the company into liquidation at the end of August.
Shareholder and sole company director Garth Petricevich told KPMG that the company failed because it lost its Ministry of Education (MoE) school bus contract.
He also cited the company’s “inability to cover damages” related to the death of a Korean man in a Te Paki dunes sandboarding accident in 2019.
Sand boarding down the dunes at Te Paki Stream in the Far North.
In 2023, Sand Safaris was ordered to pay a fine of $200,000 and reparations of $180,000 to the tourist’s family.
It is not clear whether the company has outstanding debts related to the accident. KPMG has not yet responded to a request for further information.
The Ministry of Justice is listed in the report under “known and potential” unsecured creditors.
Spokesman Paul Easton said the Ministry can’t provide any information on specific reparations or fines as it is court information and, in this case, a request must be made to the Whangārei District Court.
Some time after the accident, the company stopped offering beach tours. Its main line of work in recent years appears to have been school transport provided to the MoE for students living around Kaitāia.
KPMG warned that there were limited prospects for the recovery of funds for payment to creditors beyond those with specific security or a preferential claim.
No meeting of creditors is planned.
KPMG has yet to establish the value of the company’s vehicles.
Liquidators were advised that some company vehicles have been sold and the ownership rights of the company and of related parties have not been determined.
Sand Safaris’ secured creditors (not already discharged) are McFall Fuel, Kiwibank and TotalEnergies.
Inland Revenue is owed overdue GST, employer-related taxes and deductions, and associated penalties and interest. The debt is valued most recently at $235,000.
Unsecured creditors are owed an estimated $1m.
Known and potential unsecured creditors include Inland Revenue, ASB, Commuter Tour Services, the MoE, the Ministry of Justice, and Crown Regional Holdings (CRHL).
Another Garth Petricevich company, Ruapehu Mountain Transport, which offers transport into the Tongariro National Park, was placed in voluntary administration in August. The administrator is Blacklock Rose.
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