Eden Digital Ltd, a company that sold and distributed hardcore pornography in New Zealand for over three years and until recently was directed by US investor John Malcolm Carr CPA, was placed into liquidation yesterday, 22 November 2011, under s. 241(2)(a) of the Companies Act 1993.
See: US-based critic of economy [John M Carr CPA: (see photo http://www.carr.co.nz/images/jmc.jpg ) has lots more to say
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=154653
The majority of the estimated total deficit of Eden Digital Ltd (Co. No. 2122974), $434,000, is owed to the NZ Inland Revenue Department: $147,000 in GST/PAYE (IRD is a preferential creditor) and $148,000 owed to IRD (unsecured creditor). A total of $295,000 is therefore owed to IRD.
In addition, trade creditors (unsecured) are owed $119,000 and $20,000 is owed in wages/entitlements to the companyy’s former employees. (see Liquidator’s first report published today on the Companies Office website (www.companies.govt.nz).
The report records the reasons provided by the director Mr John M Carr CPA for Eden Digital being put into into liquidation and they include:
(1) the company was in default with its financiers and demand was made on the company due to that default, (2) the company has been supported financially by related entities [all directed by John M Carr CPA] and recently their financial support was withdrawn (3) the business was recently sold and such proceeds were applied to the security holders including CVC Group Ltd directed by John M Carr CPA (see below) (4) with no remaining assets the company was unable to trade and as a result its only shareholder [CVC Group Ltd, directed by John M Carr CPA] had no option but to place the company into receivership, (5) Eden Digital Ltd that held the licence for Erotica Lifestyles Expo, cancelled the license which meant that this aspect of its business could not continue.
The Waikato Times reported on 18 November 2011 that the Hamilton City Council “had been approached by Eden Digital Media [sic] to book Claudelands [event venue] for the [Erotica Lifestyles] expo in March [2012]“.
Fortunately for the Council, its councillors voted yesterday against allowing this hardcore porn fest using council facilities, given the fact that Eden Digital Ltd was probably insolvent throughout much of the period of time that its officers entered into negotiations with the Hamilton City Council. The Liquidator will be examining such matters to determine whether or not the company director John M Carr may have committed offences under the Companies Act 1993 (eg. trading whie insolvent)..
The majority of councillors (9 to 1) took the view that it was “inappropriate” to use the Claudelands venue for the staging of porn related activities as proposed by David Bruce Crow. They voted against the Arena being used for this proposed event.
David Bruce Crow, has been reported as acting as “spokesperson” for Esprit Events Ltd (Co. No. 3648912), another company directed by John M Carr and only recently incorporated on 10 November 2011. David Crow made an approach to the Hamilton City Council seeking the use of the Claudelands event venue for the sexpo, but without success. Concerned over the moral welfare of the community, councillors voted against the proposed use of the events venue to stage and promote porn 9 to 1.
Secured creditors of Eden Digital Ltd include its shareholder, CVC Group Ltd, directed by John M Carr, Vision rentals Ltd, Solutions Group Receivables, Konica Minolta Business Solutions and Harper Collins Publishers.
Unsecured creditors include Inland Revenue; Ezisoft Computer Systems Ltd directed by David Bruce Crow and owned by his wife Carolyn Rose Crow; NZX Media Ltd, co-directed by David Bruce Crow; PJ Digital Ltd, owned and directed by John Malcolm Carr; Florida US -based Better Business Services, Inc., owned and directed by John Malcolm Carr; and the ASB Showgrounds, Epsom, Auckland – the former longtime venue for Erotica Lifestyles Expo.
All unsecured creditors are unlikely to receive anything according to the Liquidator, Grant Bruce Reynolds of Reynolds & Associates Ltd, Insolvency Practitioners of Penrose, Auckland.
Update: Liquidatation Notice – NZ Herald Thursday 24 November 2011. The failed company was put into liquidation pursuant to section 241(2)(a) of the Companies Act 1993.
Reference
The Bob Dey Property Report (the week to 27 November 2011)
Voluntary liquidation: Steve Crow-related Eden Digital sells business, closes
http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=17011&SID=1061986009