The company that held the licence for a sex expo allegedly still owes creditors more than $350,000, according to its liquidator’s latest report.
In 2008 Auckland-based Eden Digital was given the licence to run the Erotica Lifestyle Expo – an event “targeted at adult consumers” which has been held in Auckland and some other North Island centres for more than a decade.
The event was often preceded by the Boobs on Bikes parade, which featured topless women riding on motorcycles.
But in November last year Eden Digital was placed into liquidation after its licence for the expo was cancelled by its shareholder CVC Group.
CVC is also the sole shareholder of Esprit Events, the new licence-holder for the expo.
After the cancellation, Eden Digital’s income was “decimated”, liquidator Grant Reynolds said.
According to a report Reynolds filed with the Companies Office this week, Eden Digital allegedly still owes creditors more than $350,000.
One preferential creditor had filed a claim for $171,792 and seven non-preferential unsecured creditors had filed claims totalling $183,901, the report said.
At the time of liquidation it was estimated the company owed $434,000.
A list of creditors when the company was first liquidated included Inland Revenue, ACC, ASB Showgrounds and Marquis Condoms.
According to Reynolds, Eden Digital was sold to a related party shortly before he was appointed and he is investigating this sale, as well as any possible voidable preferences.
A voidable preference is a payment of debt made before liquidation which a liquidator can apply to call back on the grounds it unfairly privileged some creditors over others.
Reynolds is also investigating any possible Companies Act breaches.
Pornography industry heavyweight Steve Crow is a former director of Eden Digital, according to Companies Office records. In 2010, Crow was banned from acting as a director for four years after the collapse of companies linked to him.
Source. Story by Hamish Fletcher. 16 June 2012
See: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10813330