Trawler company sinks

Seafish ends up in liquidation owing $15m

A TASMANIAN company that once lost a bid to operate one of the world’s largest fishing trawlers in Australian waters is now in liquidation.

Documents lodged with the Australian Securities and Investments Commission show South Pelagic Holdings Pty Ltd, trading as Seafish Tasmania, was considered to be insolvent.

According to a report to creditors in May by liquidator Simon Cathro, of solvency and forensic accountants Worrells, the company faces creditors’ claims of more than $15m.

The report said the company was incorporated in August 2001 and operated a commercial fishery business in Tasmania, holding a number of statutory fishing quotas and running freezing, processing and meal plants.

It said in 2010, Seafish Tasmania stopped fishing its quotas and started processing salmon waste to make fish meals and oils until 2016. The report noted the company entered a joint venture with a Dutch fishing company, Parlevliet & Van der Plas (PP), to fish the company’s quota using a super trawler Margiris, which was renamed to the Abel Tasman.

The bid stalled with many voicing opposition to the plan, and in 2012 the federal government imposed a two-year ban on super trawlers.

Another joint venture with PP to operate the Geelong Star started in April 2015 but the arrangement finished around October 2016 when contract negotiations broke down.

Mr Cathro wrote that his preliminary investigations indicated the failure of the company was due to the impact of legislative changes on fishing quotas and failure to renegotiate a favourable deal with PP.

Mr Cathro also blamed insufficient working capital and inadequate cash flow, and lack of strategic management of finances within the company.

Mr Cathro wrote that his examinations indicated the company may have become insolvent between October 2017 and April 2018.

The documents show one of the creditors commenced winding up proceedings against Seafish Tasmania and, in September last year, a receiver and manager was appointed for the company.

In February the Federal Court appointed Mr Cathro as liquidator. A new liquidator, Paul Weston of DW Advisory, was appointed on October 21.

Mr Weston declined to comment when contacted by the Mercury.

Documents lodged with ASIC show Peter Simunovich and Donna Simunovich, of New Zealand, and Mark Taplin are directors of the company. Mr Simunovich’s legal representative has been contacted for comment.