Spice King, which was incorporated in August 2017, was placed in liquidation last month by resolution of its Christchurch-based shareholders, Neeta and Krishna Shetty, who were also the company’s directors.
In their first report, liquidators Lynda Smart and Derek Ah Sam, of Rodgers Reidy, said the directors advised the business ceased trading immediately prior to liquidation.
Initial review of the company’s financial records indicated trading might have been transferred to an alternative entity some time before liquidation. The liquidators were seeking clarification from the directors.
They had been advised all assets, including stock, were sold prior to the liquidation.
All employee contracts were terminated prior to the appointment of liquidators, and they were aware of preferential holiday pay claims totalling $9817.21 which remained outstanding. They were yet to receive a preferential claim from Inland Revenue for any outstanding tax obligations.
The liquidators estimated there would be no funds available for unsecured creditors. But recovery actions through insolvent transactions and actions against certain other parties might bring in additional funds, they said.
Other creditors, listed under unsecured creditors, were owed $31,258 and the estimated deficit was still to be investigated.
— APL
