The Companies Act 1993 defines a phoenix company as being, in relation to a failed company, a company that at any time before or within five years after the commencement of the liquidation of a failed company, is known by a name that is also a pre-liquidation name of a failed company or is a similar name. When phoenix company arrangements are established in which the new company created bears a similar name, similar assets and similar management structure to a failed company, the purposes of such companies are usually part of a scheme either to circumvent obligations to creditors of the failed company (avoid debts owed) or to mislead the public into believing they are dealing with the same entity as previous, possibly as part of an attempt to mislead creditors of the previous company.
Porn King Steve Crow was appointed co-director on 8 December 2005 of a company directed by Dermott Malley, and Linzi Frances Malley – Computer Shopper (NZ) Ltd (Co. No. 514464) – that is now in liquidation. According to the Liquidator’s Report dated 28 May 2009, it owes $163,550 to Second Ranking Preferential Creditor – the IRD – and $262,528 to over 40 unsecured creditors, with other debts yet to be assessed.
Dermott Malley and his wife were directors of the company from 14 May 1992 to 1 September 2006 and Stephen Peter Crow (Steve Crow) served with them as co-director for 11 months before becoming sole director after they resigned. Under Crow’s leadership the company became insolvent and Crow recommended to shareholders, that it be placed into liquidation on 27 May 2009. The Company is 100% owned by CVC Group Ltd (Co. No. 1738154), of which Crow is currently one of three directors and Dermott Malley is a former director (see below).
Media Release: 11 July 2009 (updated)
“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. [Read more…]