Heslips Hatcheries Ltd, the South Canterbury free-range egg company, has gone into liquidation but the liquidator believes the debt is personal rather than that of the business.
The liquidator appointed to oversee the liquidation of a Fairlie-based free-range egg business claims more than $40,000 is owed to creditors – but responsibility for that debt is disputed.
In his first report, liquidator Iain Nellies, of Dunedin, Insolvency Management Limited, says Heslips Hatcheries Limited owes $40,448 to $5,324 to secured creditors and $35,025 to unsecured creditors.
The company, which operated as Mackenzie Free Range Eggs, ceased operations some time ago, according to its report.
Glen Heslip is listed as the sole shareholder and director of Heslips Hatcheries Limited.
* Amount owed by the South Canterbury property management company yet to be determined
* Company owes $908,000, liquidator expects clothing store staff to be paid
* Liquidators were ordered to pay creditors $56,000 after charging ‘not reasonably incurred’ fees
The director contributes to the insolvency position of the company in the dispute between the plaintiff and the company over the food stocks provided which, according to the director, were not fit for purpose, the Nellies report states .
“The director also indicates that the company had no dealings with the plaintiff creditor and that all transactions were personal. The director indicates that the wrong entity was put into liquidation.
Talk to The Herald Timaru On Tuesday, Nellies said “based on the information provided, I believe the debt is personal rather than the company’s, but I still have some investigation to do.”
Mainfeeds Ltd, a Dunedin-based poultry business, filed for liquidation of Heslips Hatcheries Ltd in Timaru High Court on March 25.
Mainfeeds Ltd is on the list of preferred and unsecured creditors. Court documents showed the company filed the liquidation claim against Heslips Hatcheries Ltd for a debt of $31,000. Ebborn Law Limited is also on the list of unsecured creditors.
Nellies was appointed liquidator by the court.
The next liquidator’s report will be published on November 25.