A Gore-based construction business, which specialised in temperature-controlled buildings for the agriculture, horticulture and viticulture sectors, owes creditors an estimated $5.88 million, the first liquidator’s report shows.
Prospec Structures was placed in liquidation in November last year by special resolution of the company’s shareholders.
Incorporated in January 2020, its directors and shareholders were listed as Nathan Mark Stewart and Ingrid Rose Stewart, of Gore, and photographs of its completed builds on its Facebook page ranged from cow barns to orchard packhouses.
In his first report to creditors and shareholders, Brenton Hunt, of Insolvency Matters, said some projects had resulted in a loss or a smaller-than-expected margin, which meant the company had some creditors outside of payment terms.
The director organised funding for the company early in the year which was used to repay a number of the creditors.
The funder had become uncomfortable with the funding for various reasons, including overdue loan/consultancy payments, and felt the director had not been transparent about the status of the company when funding was raised.
The loan was in default and a final demand had been made.
The directors sought professional advice and decided to place the company into liquidation.
The company bank account had “modest funds’’ at the time of the liquidation and there was a modest amount of plant and equipment to be sold, the report said.
Under preferential creditors, wages and holiday pay were estimated at $40,000, while Inland Revenue Department PAYE was estimated at $60,000.
Unsecured creditors were estimated to be owed $1.2 million.
Upfront payments from customers were estimated at $3m.
Subject to further verification, the liquidator estimated no funds would be available for unsecured creditors, although that would depend on the progress of the liquidation.
It was also not possible to provide a definitive statement as to whether sufficient assets would be realised for the purposes of making payment to any class of creditor at this stage but it was looking unlikely. The director advised a number of disputes with customers were to be investigated.
While it was not practicable to provide an estimated date for the completion of the liquidation, it would most probably be within a 12-month period, Mr Hunt said.