A shareholder spat has forced a Queenstown property company into liquidation owing more than $500,000 to unsecured creditors.
Remarkable Exquisite Design Ltd was put into liquidation at the end of last month by the High Court of Invercargill.
Insolvency practitioner Dennis Parsons of Hamilton has been appointed liquidator.
Its first report, published this week, said a “protracted dispute” between shareholders over the company’s operations had caused it to fail.
The company is owned by Waikato shareholders Geoffrey Short, Katrina Wardill and Maria Young.
The Companies Office website lists Mr Short as the majority shareholder, owning 51% of the company.
It also lists the trio as shareholders in two other Queenstown property investment companies, Takitimu Pounamu Ltd and Short Kat Mouse Ltd, which are not in liquidation.
The report says the company purchased an upscale residential property in Queenstown which was rented out to tourists “from time to time”.
The company’s statement of financial position estimated that the house was worth nearly $2 million. His address has not been disclosed.
The company’s only secured creditor was the Bank of New Zealand, which owed $1.5 million for the mortgage on the property.
Approximately $538,000 was owed to unsecured creditors, which included the three shareholders as well as their two other investment companies, and Inland Revenue, Queenstown’s Todd & Walker Law and Nickal Holdings Ltd.
The financial statement showed an estimated deficit of approximately $74,800.
It was likely that creditors would receive a dividend once the property was sold, according to the report.
It was estimated that the liquidation would be completed within the next six months.
When contacted, Ms Wardill declined to comment. Mr. Short and Ms. Young did not respond to requests for comment yesterday.