Ecovis’ report said the company was in trouble for several months prior to the liquidators’ appointment, “caused by the current economic environment, high levels of debt, and exacerbated by a complete lack of governance on the part of the director”.
Ecovis said attempts to restructure the business failed, “culminating with an alleged misappropriation of a significant amount of funds by the director”.
Secured creditors, including Kiwibank and BNZ, were owed $6.7m while more than was $1m was due to preferential creditor Inland Revenue. Unsecured creditors were owed $2.5m.
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The largest asset quantified as available to be realised was $2.2m in related-party receivables.
A day after it entered…