Insolvent Gisborne logging company owing $1.7m could not pay creditors
.79 was recovered from Lift Harvesting, which allegedly owed nearly Only $1.79 was recovered from an insolvent Gisborne-based logging company that allegedly owed nearly $1.7 million to creditors.
The Inland Revenue Department successfully applied at the High Court in Gisborne to place Lift Harvesting Ltd into liquidation on July 11 last year.
The Insolvency and Trustee Service – the Official Assignee’s Office under the Ministry of Business, Innovation and Employment (MBIE) – was appointed as liquidator.
The Gisborne Herald published details from the first liquidator’s report, released on August 18, which found IRD was the creditor claiming the largest sum, $461,290.33, as a preferential unsecured creditor and $679,992.76 as an unsecured creditor.
In all, there were 10 unsecured creditors, four secured creditors and two preferential unsecured creditors.
A final report on the insolvent company’s liquidation was released in October.
“The cause of the liquidation appears to be linked to a failure to account for taxation, along with a loss of income due to seasonal conditions, specifically flooding,” liquidator Lee Humphreys wrote.
The summary of claims in that report gives an estimated total claims figure of $1,689,400.08.
Of that, $237,401.53 was owed to secured creditors, $465,360.07 to preferential creditors and $986,638.48 to unsecured creditors.
The liquidator recovered $1.79 from the company bank account, which was put towards the Official Assignee’s expenses.
The liquidator’s time cost was listed as $833.75.
“Independent investigations conducted by the liquidator, including searches through various databases and other available avenues, have not identified any assets of interest for creditors in this liquidation.”
As there were no assets available for distribution to creditors, the Official Assignee concluded the liquidation.
Company director Izaac Jay Davy has been approached for comment via a listed email address this week.
Two Gisborne-based companies were listed as unsecured creditors.
A&P Plant & Machinery was reportedly owed $115,247.32 as of August 18. Colvins Communications was reportedly owed $7285.89.
The Gisborne Herald approached both companies; representatives declined to comment on the liquidation or the amounts allegedly owed to the businesses.
IRD said it could not comment on specific taxpayer matters because of confidentiality required under section 18 of the Tax Administration Act 1994.