Doubts over firm’s cash

People owed money by a muchmaligned ticket company may be out of luck, with liquidators doubting everyone will be paid.

Companies associated with Ticket Rocket were placed in receivership in August, after reports the ticket agent was not paying refunds for events cancelled due to coronavirus lockdowns.

One of those companies, Fortress Information Systems Ltd, was subsequently placed in liquidation in October over debts owed to the Hurricanes and Crusaders Super Rugby franchises.

The Hurricanes were owed $186,000 and the Crusaders $155,000.

Fortress was the same company that had $676,000 frozen by the High Court after an application from the Palmerston North City Council – a move the company tried to keep secret.

Some financial details behind Ticket Rocket’s collapse were made public after the first receiver’s reports were issued last month, including the fact the associated companies collectively owed at least $8.4 million.

But more can be revealed after liquidator Rodgers Reidy released its first report on Friday.

Receivers BDO were being left in charge of the company’s assets, with anything left after the receivership to be taken care of as part of the liquidation.

The liquidator said it estimated there would be no money for any unsecured creditors.

BDO has already said it hoped to sell Ticket Rocket as a going concern.

Although the liquidator was looking if there were ways to recover money for the business, it already had received a claim from Inland Revenue for $512,164 in GST and income tax arrears.

It also estimated $3.17m was owed to unsecured creditors that were not Inland Revenue.

That figure is higher than the $2.8m BDO said in its November report was owed to unsecured creditors, the vast majority of that to show promoters and ticket holders.

Although BDO said it was too early to say how much money would be left for punters and promoters, Rodgers Reidy said it estimated there would be no money for any unsecured creditors.

Rodgers Reidy did not give a finish date on the liquidation, but said it would look at the company’s books and records – which BDO has already expressed doubts about – to see if there were any insolvent transactions or legal issues.