In accordance with Section 255 of the Companies Act 1993, Liquidators have a statutory duty to report to all creditors and shareholders on the conduct of the liquidation of a company during the entire period for which they have been appointed Liquidators.  Six monthly reports are required to be promptly issued following a company being placed into liquidation and these reports are to be lodged with the Companies Office by the Liquidator and filed on its website www.companies.govt.nz . (It is notworthy that Court-appointed company liquidations are on the rise according to latest figures available from the Ministry of Economic Development).

Buildwise Limited (Co. No. 714048), directed by David Bruce Crow of Inglewood, Taranaki, was placed into voluntary liquidation with Insolvency specialists, Meltzer Mason Heath of Auckland, on 3 July 2009, owing $380,000 to unsecured creditors and an “unknown” amount to preferential creditors and secured creditors, according to the Liquidator’s Report dated 3 July 2009 (53 creditors were “known” at the time and listed in this report).

However, since this initial insolvency report was issued, only two further Liquidator’s Reports has been filed and made available to creditors on the Companies Office website. The first covering the period 3 July 2009 to 3 January 2010 states: “It is unlikely that there will be funds available for a distribution to unsecured creditors”.  No information is provided as to funds that might be available to preferential creditors and/or secured creditors. [Read more…]