Firm owes nearly $4m

An insolvent Nelson marine company owes nearly $4 million to companies across the country, and the figure could rise, liquidators warn.

Nelson Reliance Engineering went into liquidation in March with liabilities listed at $3,195,316, leaving more than 170 unsecured creditors out of pocket.

The latest liquidators’ report shows creditors’ claims now total $3,837,765, with unsecured creditors owed $3,242,507 of that.

Staff at the boatbuilding company, owned by Nevil Basalaj, were still owed about half of the $96,000 claimed for in unpaid wages and holiday pay, the sixmonthly report showed.

Of $142,199 collected from the business, around $35,000 remained after staff payments, liquidators’ fees and other charges were deducted. Inland Revenue was next in line for payment, owed $482,576 in unpaid tax and deductions.

The number of claims could ‘‘increase materially,’’ liquidator Rhys Cain said.

‘‘There could be creditors who have not yet claimed.’’

Unsecured creditors still stood to receive money if collections were made of amounts owing to the company, he said.

The liquidators were pursuing ‘‘a significant amount’’ of money owed to Reliance Engineering from companies related to Basalaj and his partner, Amber Basalaj, who was general manager of the liquidated business, Cain said.

Nelson business Nicholson Protective Coatings said it was owed well in excess of $200,000. ‘‘It’s like a year wasted,’’ managing director Dane Nicholson said.

The time it was taking the liquidators to progress their investigation was frustrating, Nicholson said.

Another creditor, Fabriweld Nelson, doubted it would be paid nearly $9000 owed for sheet metal work. ‘‘It’s money that we’re never going to have to grow the business,’’ owner Paul Black said.

He considered his company lucky, however. ‘‘We were quite fortunate that we got some [money] out some time earlier, but the amount of damage they’ve done to business people of Nelson is horrific.’’

Cain said it was not ‘‘practicable’’ to provide an estimated date for the completion of the liquidation. Investigations into related-party debt were taking longer than anticipated ‘‘due to the number of related parties involved’’. Communication with the Basalajs had also been disappointing, he said.

Nevil Basalaj is a major shareholder in Fluid Power Solutions, and director of both Basalaj Properties and Basalaj Racing. He sold Reliance Engineering umbrella company, Challenge Marine, in June. He is thought to be visiting the United States, and didn’t respond to Stuff’s requests for comment.