Slim pickings left for Challenge Steel creditors

Challenge Steel’s liquidators have spent more on legal and professional fees than amounts recovered for creditors, as they chase a major debtor through the courts. The steel company launched with fanfare near the end of 2013 but collapsed at the end of 2016. ‘‘It is uncertain whether any recovery to unsecured creditors can be achieved,’’ liquidator Colin Gower of BDO said. The 40 unsecured creditors were owed an estimated $6.1 million. Since October 2017 Gower has made total payments of $1,007,221. Legal fees have taken the lion’s share of money recovered – $359,450. The liquidators’ remuneration has taken $188,311. The liquidators have paid $6727 to the first secured creditor, and $169,351 to employees. Other professional fees have taken $88,539, and smaller amounts have been paid for rent, technology support and minor expenses.