‘Good interest’ has Ellis receiver hopeful of sale

THE receiver of failed Dunedin bedding manufacturer Ellis Fibre hopes for a purchase by interested domestic or offshore parties as the sale deadline looms next week.

The almost 50yearold business was placed in receivers’ hands by the company’s sole director, Glenn Alexander, early last month.

KPMG partner Andrew Hawkes said when contacted this week more than 20 parties had expressed ‘‘indicative interest’’ and were undertaking due diligence.

The sale deadline is Friday next week.

‘‘There’s been a good level of interest, from offshore and domestic, and we’re hopeful for some offers [by deadline],’’ he said.

Mr Hawkes did not want to be overly optimistic, but understood some overseas parties were preparing to fly to Dunedin.

‘‘It [due diligence] has to be narrowed down to a preferred party to work with,’’ he said.

With raw material stocks still being worked on, Mr Hawkes said the overall debttoasset value was yet to be established, but the main debt was to a bank and IRD was now also a preferential creditor.

The amount owed to unsecured creditors was ‘‘quite significant’’, but that total also was still being assessed, he said.

The preferential creditor claims of about 20 staff, covering PAYE, KiwiSaver contributions and wages, were a ‘‘relatively small’’ amount of the overall debt and had been paid.

Some staff had been subcontracted to finish manufacturing raw materials, and had been paid for that work, he said.

Mr Alexander’s other house insulation business, Technobond Ltd, adjacent to Ellis Fibre, is not in receivership.