An order was made in the High Court at Dunedin in March, 2023, to place Burns Group 2018 Ltd — of which beleaguered businessman Malcolm Burns is the sole director — into liquidation, on the application of Inland Revenue. The company’s shares are split between Mr Burns and Leonard Cheng.
It operated as a holding company with passive investment of three subsidiary companies: Titan Bulk Haulage — which is in liquidation — Otago Excavation — which is in receivership and liquidation — and Forest Distribution and Logistics. Mr Burns is the sole director of those three companies.
In their fifth report to creditors and shareholders, liquidators Luke Norman and Kristal Pihama, of KPMG, said they had entered into an agreement for the sale and purchase of the company’s shares in Forest Distribution and Logistics, which is described on the Companies Office website as an export documentation preparation service.
The purchaser defaulted on the agreed terms and, while the liquidators have had prolonged communication with the purchaser, no funds had been received.
In the statement of company affairs included in the liquidators’ report, breach of directors’ duties, with an estimated value of more than $3.1 million, was listed. Other assets were still to be determined, while total liabilities sat at just over $2 million.
— Creditor claims totalling nearly $300,000 have been received for former Dunedin restaurant Alley Cantina which went into liquidation last year.
The Mexican eatery, which operated in a lane off George St, closed last June and liquidators Trevor and Emma Laing, of Laing Insolvency Specialists, were appointed in August.
The business was then marketed as an opportunity for a new operator, but no offers had been received that would cover the costs of sale, the liquidators said.
Potential purchasers cited the costs of a refit as a main barrier to making an offer. An initial appraisal for a sale price had subsequently been reduced.
The sole agency had about a month to go and the liquidators would continue to liaise with the agent to achieve a sale. The landlord had foregone rent while the business was on the market.
Kiwibank was listed as the only secured creditor, with a claim of just over $14,800. Inland Revenue debt was listed at just over $122,000 while a claim had been received from an employee totalling $25,210. There were eight unsecured creditors with claims of more than $135,600.
The liquidators expected the liquidation to be completed within the next six months but, given the feedback from the sale of the business to date, a distribution to unsecured creditors was not expected.
— A company that once operated a popular South Dunedin tavern has been liquidated, leaving behind more than $100,000 of remaining debt.
Akuhata Ltd was put into liquidation in February last year, with Trevor and Emma Laing appointed liquidators.
The company was incorporated in November 2020 for the purpose of purchasing a tavern operation from a leased premises in Dunedin, The Kensington Tavern, the liquidator’s first report said.
The business was placed on the market in 2023 and an agreement for sale was entered into and settled on in January last year.
Payments to secured creditors were made from the sale funds, but the balance available was not sufficient to satisfy all other creditors in full, it said.
The liquidator’s final report, made public this month, said a total of $20,976.02 worth of assets had been realised.
A total of 10 creditor claims were received. The IRD, listed as a preferential creditor, was paid $11,034.93. Preferential creditors were paid 9c to the dollar and a remaining $109,250.59 was still owed, an accompanying summary report said.
— APL
