\u201cAfter careful consultation with the IRD [Inland Revenue Department] and a thorough review of recovery options, we determined that voluntary liquidation was the most responsible course of action.\u201d<\/p>\n
Black Pineapple has served hundreds of thousands of cocktails at events throughout New Zealand and more than 18,000 cocktail boxes have been delivered via e-commerce since 2017.<\/p>\n
Liquidators Chris McCullagh and Stephen Lawrence, of PKF Corporate Recovery & Insolvency, have released their six-month report into the business\u2019 state of affairs.<\/p>\n
The pair identified $30,609 in accounts receivable in March, with $5115.33 collected from trade debtors as of September. A further $17,607.78 in cash assets were recovered, as well as refunds of $567.30 from the company\u2019s suppliers and $5115 from trade debtors.<\/p>\n
Prepayments of $7055 were also collected in March, relating to insurance funding owed to Monument Finance.<\/p>\n
However, Walker is disputing the liquidators\u2019 claim of an overdrawn current account owned by him valued at $35,044 (according to its book value back in March).<\/p>\n
\u201cThe shareholder has disputed the claim. The liquidators are currently discussing the nature of the drawings with both the shareholder and the company\u2019s accountant,\u201d the liquidators said in their report.<\/p>\n
How much is owed?<\/p>\n
The company owes creditors roughly $778,800 according to the book value as of March, with $727,373 estimated to realise as of September.<\/p>\n
Breaking that figure down, $34,771.17 is owed to ANZ Bank New Zealand which holds a general security interest over all present and after-acquired personal property of the business. <\/p>\n
This relates to an overdraft facility and credit card ($29,192 owed), as well as a business loan of $5579.<\/p>\n
The liquidators said it was unlikely any funds would be available for distribution to secured creditors of the company.<\/p>\n
As for preferential creditors, Inland Revenue submitted a preferential claim of $270,492.65 in relation to GST and Employer Activities arrears. The liquidators indicated the claim had a book value of $673,392 back in March.<\/p>\n
McCullagh and Lawrence said it was unknown at this stage whether any funds would become available for the debt.<\/p>\n
The liquidators received a further two claims from unsecured creditors totalling $422,108.52.<\/p>\n
This includes a further $416,760 claim from Inland Revenue ($687,253 in total), and another $5349 in claims from trade creditors.<\/p>\n
According to the first liquidators\u2019 report, known creditors included the Accident Compensation Corporation (ACC), ANZ Bank, Coca-Cola Amatil (NZ) and Heartland Bank.<\/p>\n
Liquidators are still to confirm the amounts of two loans to the business from Monument Finance and a related party, but said they do not expect that any funds will be available for unsecured creditors.<\/p>\n
McCullagh and Lawrence said once they had resolved the matter regarding Walker\u2019s current account they would be able to finalise the liquidation, with an estimated completion by December 2025. <\/p>\n
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n