Seven cents, and the little guys got zero
Three years after Gisborne forestry operator Stubbs Contractors went into liquidation in May 2023, the final liquidators’ report has closed the file with numbers that should give every trade supplier pause. Against total creditor claims of $4,795,715, the liquidators distributed just $341,898, roughly 7.1 cents in the dollar. The shortfall runs to about $4.45 million.
The waterfall tells the story. UDC Finance, holding secured claims of $2.875 million against the company’s plant and equipment, recovered around 8 percent. Employees, ranking as preferential creditors, got about 34 cents on $96,593 in wages and holiday pay. Inland Revenue, despite secured status over…