Liquidation unlikely to have funds for creditors

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Dunedin building company Highland Homes has gone into liquidation and all of its assets will be sold at public auction.

Yesterday the liquidator, Rodgers Reidy director Paul Vlasic, said the amount the company owed others would be determined by his investigation.

However, he warned those who owed the company money that they were unlikely to get it back.

According to Highland Homes director Craig Davidson, the reason for the insolvency was the Covid-19 pandemic and “difficult business conditions”, Mr Vlasic said in his first liquidation report of the business.

All assets held by the company would be sold at public auction and any expressions of interest should be directed to his office, Vlasic said.

His investigation would determine if there were any assets he was unaware of and, furthermore, if there were other potential ways to recover the company’s money.

An investigation of the books, records and affairs of the company would be conducted to determine whether any insolvent transactions had taken place and whether there had been breaches of the law.

If there had been, Mr. Vlasic would consider making claims that would increase what was available to be repaid to creditors.

If there was sufficient evidence, breaches of the legislation would be reported to the authorities, he said.

“Subject to further verification, I believe there will be no funds available to unsecured creditors.

“However, recovery actions through insolvent transactions and actions against certain other parties may yield additional funds,” he said.

A list of creditors attached to the report lists more than 60 companies or organizations liable.

The Inland Revenue Department had not yet made a claim for outstanding tax liabilities, Mr Vlasic said.

Highland Homes was incorporated in October 2015 and went out of business when shareholders Mr Davidson and Alice Hurst appointed Mr Vlasic last week.

It was too early to estimate a completion date for this liquidation, Mr. Vlasic said.

He gave creditors until September 30 to make their claims and establish any priority their claims might have.

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