A Christchurch painting and maintenance contractor has gone into liquidation owing creditors an estimated $2.6 million.
The collapse of Phil Clarke & Son Ltd has left staff out of pocket by about $100,000 in wages and holiday pay, while Inland Revenue (IRD) is owed $1.8m.
The business was placed into liquidation on July 8 by its shareholder, and Insolvency Matters’ Brenton Hunt was appointed as liquidator.
In his first report released on Monday, Mr Hunt was told by the director a major customer of the company had been reducing its spending to the point where the business had become uneconomic.
IRD assessments had fallen behind.
The sole shareholder and director named for the business in the Companies Register is Daniel Clarke.
Mr Hunt found the company bank account was in funds of about $35,000 at liquidation, but initial investigations indicated large overdrawn shareholder accounts.
Goods or services delivered by the business and yet to be paid for, known as accounts receivable, are estimated to be worth about $200,000 on collection.
Plant and equipment estimated to realise $20,000 will be sold.
The liquidator will also seek to recover motor vehicles owned by the company, some of which have finance owing on them, estimated to raise about $30,000.
However, this still leaves a total estimated shortfall to all creditors of $2,630,000.
“The liquidator is undertaking investigations to determine whether there are any claims, and or other assets, that may give rise to additional recoveries for the benefit of creditors.”
Funds were unlikely to be available for unsecured creditors, although this would depend on the progress of the liquidation, he said.
The 21 firms listed as unsecured creditors included building, paint and trade suppliers, ACC, Finance Now and other related business services, while staff details were withheld.
