Media Release: 11 July 2009 (updated)
No. 1 Story http://business.scoop.co.nz/2009/07/13/update-on-steve-crow-and-porn-empire-collapse/
“I’m quite happy for you to call me a pornographer [and] a sleazeball, whatever you want to call me. But keep it factual.” Steve Crow (Quoted in NZ Listener 2004).
FOUR of Steve Crow’s porn companies of which he was sole director have gone belly up. Critics of his hard-core putrid porn promotion will be crowing loudly, but creditors, including about 30 New Zealand companies, will not be. The shrivelling of his now anaemic porno empire has left him impotent he claims to recompense any of his many unsecured creditors who are owed at least $714,000. In addition his companies owe at least $323,753 to the IRD. The debt will probably increase once the final liquidator’s reports are completed.
Crow says ‘I don’t have any obligation to recompense creditors of the liquidated companies” (Dominion Post 8/07/09). On TV One’s Close Up “Porn Industry Going Bust?” – he tried to downplay the debts, saying that most of the money was owed to creditors outside New Zealand who were still acting benevolently towards him. Surrounded by busty porn stars and with his new girfriend Rachel Whitewell at his side, his message was – its business or bust!
Lloyd J. Hayward of accountants Meltzer Mason Heath is the liquidator appointed for all of his three failed companies.
The first company, Vixen Direct Ltd, an importer and distributor of hard-core porno sleaze, had its name changed by Crow on 1 May 2009 to Z4K74D Ltd (Co. No. 514464), just before the liquidator was appointed on 27 May 2009.
The Liquidator’s Report filed with the Companies Office on 3 June 2009 shows that the company owes at least $262,528 to unsecured creditors and $163,550 to IRD. The company’s sole director is recorded on the Companies website as “Stephen Peter Crow” (Steve Crow) who lists his residential address as 15/3a Harrison Rd, Ellerslie, Auckland. All company shares (100) are owned by CVC Group Ltd (Co. No. 1738154), of which Crow is a one of three directors (The other two are: John Malcolm Carr, of 14/31 Greenlane Rd, Remuera and Shirish Daddaram Vagal of 306 Bucklands Beach Road, Bucklands Bay, Auckland). CVC Group’s registered office is 45 Stanhope Rd, Elleslie, Auckland.
Before moving on to Crow’s second company that has been placed into liquidation, it is important to note that he was sole director of another porn company with the name Vixen Direct Ltd (Co. No. 1738131) which was registered on 5 December 2005. It was struck off the Companies Registrar on 29 March 2007 because its 2006 Annual Return was not filed. It was not placed into liquidation or receivership so Crow was entitled to use that name to rebrand another of his companies, which he did in late 2008. The company struck off was 100% owned by CVC Group Ltd of which, as noted, Crow is one of three directors.
On 9 December 2008 Vixen Direct Ltd (Co. No. 1738131) – the one that had been struck off – appeared to have arisen gloriously from the smoldering ashes, like the proverbial Phoenix. How was this Miracle of miracles masterminded? Simple. Crow renamed another of his companies, namely Vixen Wholesale Ltd, as “Vixen Direct Ltd”. However, the imposter company quickly came to grief financially and was placed in liquidation on 27 May 2009, as noted, after its name was changed to Z4K74D Co. Ltd on 1 May 2009.
Chicanery involving phoenix companies came to the attention of the Companies Office enforcement agents and legislators some time ago, leading to Sections 386A to 386F of the Companies Act 1993 being amended on 1 November 2007 as part of the Companies Amendment Act 2006. A director of a company that has gone into liquidation or receivership cannot now be a director of a company with the same name. Crow cannot ever be a director of any company called Vixen Direct Ltd, Z4K74D Ltd, Erotica Expo Ltd, Malubu Media Ltd, Vixen TV Ltd, or Eden Media Ltd (see later discussion).
The second of Crow’s porn companies to be placed into liquidation is Erotica Expo Ltd (Co. No. 1275425), the operator of Erotica sex expos. On the 1 May 2009 Crow changed its name to Malibu Media Ltd just before it was placed into liquidation on 27 May 2009. This name change could be seen as yet another attempt by him to keep creditors and media from sniffing the stench of another messy company meltdown. Perhaps it was a naive attempt to try and preserve the dignity of the original company name so he could use it again – but he would be breaking the law to direct any company with this name.
According to the Liquidator’s First Report dated 3 June 2009 the company owes at least $145,665 to unsecured creditors and shareholders and $18,649 to IRD. It has its registered office 45 Stanhope Rd, Elleslie, Auckland and all its shares are all owned by CVC Group Ltd of which Crow is one of three directors, as noted.
Creditors and the liquidator will be very interested to learn that Crow recently boasted to the Dominion Post (8 July) that there would be Erotica expos staged later this year, one in Auckland in September and one in New Plymouth in October. Many are asking: Will Crow’s company staging these porn fests be using the $714,000 owed to his many creditors and/or the $323,753 owed to the IRD to fund this sleaze?
The third porn company Crow directed that has been placed into liquidation is Les Obstacles de L’Armour (Co. No 608726) which specialised in importing and distributing hard-core porn. It was placed into liquidation on 8 March 2006 and the Liquidator’s First Report dated 13 March 2006 showed the company owed at least $307,218 to unsecured creditors. The liquidation process cannot be completed yet because the liquidator has been asked by one creditor – the IRD – not to strike the company off yet, because it is still pursuing a debt of $141,554 of unpaid GST. The liquidator’s report indicates the cupboard is competely bare for shareholders.
The Dominion Post report (8 July 2009) states that Crow says both his companies Z4K74D Ltd (formerly Vixen Direct Ltd) and Malibu Media Ltd (formerly Erotica Expo Ltd) “were 100 per cent owned by another company, CVC Group Ltd, which had sold those assets to Eden Digital [Ltd].” This is correct. But what the article fails to disclose is that Stephen Peter Crow is one of three current directors of CVC Group Ltd (Crow, Vagal and Carr) that sold their assets on to Eden Digital Ltd (Co No. 21222974) which is itself 100% owned by CVC Group Ltd.
Eden Digital Ltd, which Crow boasted on TV One’s Close Up is the phoenix that has arisen from the ashes of his companies Vixen Direct and Erotica Expo, now both now in liquidation; is currently co-directed by Stephen Peter Crow of 57a Walmsley Rd, Otahuhi, Auckland and John Malcolm Carr of 14/31 Greenlane Rd, Greenlane Auckland. It was originally called Vixen TV Limited and was registered as a company on 23 April 2008 with three directors, Crow, Carr and Shirish Dattaram Vagal of 306 Bucklands Beach Rd, Bucklands Beach Auckland. Vagal resigned as director on 31 March 2009. The company’s name was changed from Vixen TV Ltd to Eden Digital Ltd on 26 March 2009. Its registered office is at 45 Stanhope Road, Ellerslie, Auckland.
In summary: The assets of two companies of which Crow was sole director, which are now in liquidation, were purchased by a company of which he is currently one of its three directors, and then sold on to a company of which he is now the sole director [his co-director, ex-wife Gaylene Sharon Rogers, resigned on 16 July 2009].
What are Crow’s financial interests in Eden Digital Ltd? As noted 100% of its shares are owned by CVC Group, of which he is one of three directors. But what, if any, is his financial interest in the company?
Crow is sole director of HWGA Co Ltd (Co No. 661946), that owns 40.3 % of the shares of CVC Group Ltd, which as noted owns 100% of Eden Digital Ltd.
The Companies Office records for the HWGA Co Ltd and CVC Group Ltd show Crow as director listing his residential address as 15/3A Harrison Rd, Elleslie for both, but for Eden Digital Ltd he records it as 57a Walmsley Rd, Otahuhu, the same address given by his co-director of HWGA –[Editor update: now resigned as of 16 July 2006].
Crow told the Dominion Post: “I’ve basically consolidated Vixen, Erotica Expo and NZX Magazine into one company [Eden Digital Ltd] and trimmed a whole lot of overheads and we’re continuing to trade.” With his “partner” Rachel Whitewell in tow attending a Porn Fest in the US, he confirmed this claim with TV One Close Up. He says that CVC Group as Parent Company had a security interest in the assets of Vixen Direct Ltd and Erotica Expo Ltd, both now in liquidation, so CVC had a right to their stock (hard-core porn titles) as payment for money owed. This transaction involving CVC acquiring porn took place before the company was put into liquidation, leaving very little candy in the larder for creditors.
The liquidator will no doubt be very interested to determine the legal basis of the “prior security interest” claim of the parent company CVC Group in acquiring a mountain of hard-core porn titles etc. from Vixen and Erotica Expo, and will focus on the true market value of such stock.
On 21 May 2009 the fourth company of which Steve Crow is the sole director, was placed into liquidation – Eden Media Ltd (Co. No. 1162890) – formerly Vixen TV Ltd. An application to the High Court at Auckland from one of its creditors, PMP Maxum, has resulted in the Court appointment of Richard Agnew and Vivian Judith Fatupaito of PricewaterhouseCoopers as joint and several liquidators. The company was incorporated on 29 November 2005 and Crow became the sole director at that time.
The Liquidator’s Report dated 29 June 2009 identifies two companies – Rent Plus Funding Ltd and Vision Rental Ltd – as having “security interests” in Eden Media Ltd. The Report notes that Crow claims that his company was a “shelf company that never traded” and “advised that the entity who is indebted to the petitioning creditor [PMP Maxum] was actually Z4K74D Ltd (In Liquidation) formerly Vixen Direct Ltd.
Again, CVC Group Ltd, the company of which Crow is one of three directors, owns all the shares of another of his failed companies – Eden Media Ltd, and both companies have their registered offices at 45 Stanhope Rd, Elleslie, Auckland.
The New Zealand public and especially the creditors will no doubt be asking: Should Company Director Steve Crow, who currently has four of his companies in liquidation, be allowed by the Companies Office to continue to operate as a company director?
One wonders how many of his creditors that include over 30 kiwi companies and the IRD, will be lining the streets gawking at Crow and his busty bevy of beautiful babes on bikes when he parades his naked ambition along the streets of Auckland in September and New Plymouth in October to advertise his Erotica Expos. It’s Business or Bust for Crow!
Selected References:
Mass market penetration, by Matt Nippert and Patrick Crewdson. NZ Listener August 21-27, 2004. “I’m quite happy for you to call me a pornographer,” [and] … “I’m quite happy for you to call me a sleazeball, whatever you want to call me. But keep it factual.” Steve Crow.
Companies Website http://www.companies.govt.nz
Information about Phoenix companies can be found in sections 386A to 386F of the Companies Act 1993. This information became part of the Act on 1 November 2007 as part of the Companies Amendment Act 2006.
http://www.legislation.govt.nz/act/public/1993/0105/latest/DLM319570.html
TV One Close Up News: Porn Industry Going Bust?
http://tvnz.co.nz/close-up/porn-industry-going-bust-2835557
Porn king’s empire shrivels by Andrew Janes
The Dominion Post (Business Day), page C1 Wednesday 8 July 2009
http://www.stuff.co.nz/business/industries/2573271/Porn-kings-empire-shrivels
NBR National Business Review Update
http://www.nbr.co.nz/horses-mouth/steve-crows-empire-collapse-update
Auckland Scoop Story
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