The sale of the business and related fixed assets returned $515,000.<\/p>\n
A further $138,596 was recovered through the sale of other fixed assets at auction.<\/p>\n
The liquidators said they made distributions to secured creditors totalling $341,212. This included $310,961 relating to a claim from Heartland Bank.<\/p>\n
Preferential employee wages and holiday pay of $37,852 was paid in full. However, a further $19,808, classified as non-preferential claims, was not distributed.<\/p>\n
Inland Revenue received just $15,469 out of its $259,048 preferential claim.<\/p>\n
Other distributions included liquidators\u2019 fees ($183,665), legal fees, agents\u2019 commission and contractor costs.<\/p>\n
Unsecured creditors, who were owed $1,802,583, received nothing, according to the report.<\/p>\n
A shortfall of $313,930 is left owing to secured creditors, along with $243,579 in preferential claims.<\/p>\n
\u201cBased on the realisations during the liquidation, there was a shortfall in respect of IRD\u2019s preferential claim, and there were no funds available for distribution to the unsecured creditors,\u201d the report said.<\/p>\n
It also noted that company records showed amounts owing to PMSI holders \u2013 classed as secured creditors \u2013 totalling $344,181. However, \u201c\u2026 [A] tracing exercise was undertaken to determine the value of the inventory subject to these security interests and the relevant collateral was assessed at $30,251, which was distributed to PMSI holders in respect of their claims. In the absence of collateral, the remaining debt is effectively unsecured.\u201d<\/p>\n
\u2018Cannot continue without creditor support\u2019<\/p>\n