Councillor Dave Macpherson said the council had had a lucky escape despite not being aware of the financial situation when it voted 9-1 last week against hosting the Erotica Lifestyle Expo.
Eden Digital Ltd, which held the licence for Erotica Lifestyles Expo, was put into liquidation on November 22 and, according to the liquidator’s report, struggled to attract large numbers to the event and had suffered cashflow problems.
Auckland-based liquidator Grant Reynolds said sole shareholder CVC Group director John Carr appointed him to liquidate the company after realising it had no way to repay its debts.
CVC Group removed the licence for Erotica from Eden Digital “some months back” and as a result the company had lost its revenue-earning ability.
This month CVC set up Esprit Events, which is the new licence-holder for Erotica.
Eden Digital went into liquidation owing $434,000 [most of it to IRD] and Mr Reynolds said it was unlikely any of the unsecured creditors would be repaid in full.
ASB Showgrounds in Auckland is among the unsecured creditors. [It had served as a venue for Erotica Lifestyles Expo for some years, but recently its management ended its contract with the Expo organisers, no doubt due to unpaid bills].
Story by Nikki Preston. Published Wednesday, 30 November 2011