Creditors of a Queenstown-based building firm placed into liquidation last month are owed just over $360,000, the first liquidator’s report shows.
Excel Building Ltd was put into liquidation in the High Court at Invercargill last month on the application of Daeweld Engineering Ltd.
The company was incorporated in October 2020 and its sole director and shareholder is Ashley John King.
Liquidator Iain Nellies, of Insolvency Management Ltd, said the director attributed the company’s insolvency position to difficulty in collecting amounts owed following the completion of a building contract.
Net assets totalled $114,000 and the total estimated deficit, subject to costs of liquidation, was nearly $247,000. It was not possible to determine whether a dividend would become payable to creditors until all the records had been examined, Mr Nellies said.
• A Wyndham-based contract milking business, which was incorporated in October 2022 and effectively ceased trading in June the following year, was placed in liquidation this month by shareholders resolution.
In their first report, liquidators Trevor and Emma Laing, of Laing Insolvency Specialists, said both directors of Shanora Ltd — Ora Lee Hitchcock and Shane Alexander Hitchcock — worked in the business.
One director suffered an injury and was unable to continue working. The flow-on effect caused financial issues for the company and the milking contract was then cancelled. The company had very few assets while liabilities were estimated at just over $63,000.
The liquidators had been advised the company had Inland Revenue Department liabilities, and the exact amount of the preferential debt was being confirmed.
There was also an ERA determination for an ex-employee. Earlier this year, the Otago Daily Times reported the ERA had ordered Shanora Ltd to pay dairy assistant Sharna Andrews nearly $20,000 to compensate for lost wages and distress she suffered after she was unjustifiably fired and “unfairly targeted”.
At this stage, the liquidators were aware of only seven unsecured creditors. It was too early in the liquidation process to estimate if a dividend would be available to creditors. — APL
