Now six months into the liquidation, Sprosen and White have confirmed that the companies owe a combined $42.92m. However, $41.27m of that figure is owed to related-party creditors, including amounts owed between the companies.<\/p>\n
Cherri Holdings owes a total of $24.92m to creditors, split between $10.89m to external creditors and $24.9m to related-party creditors.<\/p>\n
Cherri Global owes the next largest amount, with $11.27m owed to related-party creditors. The remaining $1.62m is owed to external creditors, including the Ministry of Business, Innovation and Employment (MBIE).<\/p>\n
Cherri Machinery, meanwhile, owes $5.1m to related-party creditors, with $8464 owed to external creditors.<\/p>\n
Assets sold<\/p>\n
Since their initial report, Sprosen and White have received the companies\u2019 bank statements for the two-year period prior to the liquidation, which weren\u2019t previously available.<\/p>\n
The pair have also sold a majority of the companies\u2019 assets through an on-site auction, providing net proceeds of $89,000 after deducting sales agent and related costs.<\/p>\n
However, several assets subject to security interests which were included in the auction process failed to sell, and have been collected by the relevant secured creditors.<\/p>\n
As for the companies\u2019 debts at the date of liquidations, Cherri Global Limited was owed $175,288, Cherri Machinery Limited $93,301 and Cherri Holdings Limited $397,936, totalling $666,525.<\/p>\n
Liquidators did collect $97,248 during the reporting period, and are currently holding the funds in trust before they are transferred to the liquidators\u2019 trust account in due course.<\/p>\n
The liquidators\u2019 investigations have identified certain claims against third parties which they are in the process of advancing, with any details to be provided in future reports.<\/p>\n
Sprosen and White said they were unable to comment on the likelihood of a distribution to preferential and unsecured creditors.<\/p>\n
Crown among creditors<\/p>\n
The three companies have several large creditors among them, including Spark and Manawa Energy, however a significant amount is owed to MBIE and K\u0101noa \u2013 the Regional Economic Development & Investment Unit.<\/p>\n
K\u0101noa general manager of investment management Brent Chalmers confirmed that in November 2023, following Cyclone Gabrielle, Cherri Global was approved a loan of up to $5m, due to its recognition as a significant cherry producer and employer in the Hawke\u2019s Bay region.<\/p>\n
Chalmers said, however, that \u201cwhile the loan was approved for $5m, it was only partially drawn down by Cherri Global, with a portion also unspent and returned\u201d.<\/p>\n
The funding came from the North Island Weather Events (NIWE) Primary Producer Finance Scheme, which was designed to help North Island land-based primary producers severely impacted by the weather events in early 2023, including the Auckland Anniversary Weekend floods and Cyclone Gabrielle.<\/p>\n
Chalmers confirmed $1.35m is still owed to Crown Regional Holdings Limited (CRHL), the holding company for investments managed by K\u0101noa.<\/p>\n
\u201cCRHL will not know the final recovery amount until the liquidators\u2019 process is complete.\u201d<\/p>\n
Regional Development Minister Shane Jones defended his regional growth program<\/a>me<\/a> in July after a long-delayed annual report showed more than half of the $257m loan book held by the Government entity formerly known as the Provincial Growth Fund was considered to be at risk of impairment or default.<\/p>\n Sprosen and White confirmed they are still unable to provide an estimated end date for the liquidation, and expect to issue a further report in six months unless the liquidation is completed beforehand.<\/p>\n Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n