Ticket Rocket company debts more than $8m, receivers say
THE company behind Ticket Rocket that is now in liquidation has debts of more than $8 million, according to the first receivers’ report into the business.
BDO receiver and manager Diana Matchett reported Fortress Information Systems Ltd — which has three subsidiaries known as Dash Group, Dash Tickets and Dash Tickets Australia — had just under $3 million in assets.
But that figure does not include the value of many of the company’s assets, which were omitted from the report because the receiver was concerned they would inhibit their ability to sell them.
Those assets include debts owed to Ticket Rocket, property and equipment, intangible assets (such as brand value or trademarks) and other investments.
The company is better known in New Zealand as Ticket Rocket or Ticket Direct and was put into receivership at the end of August.
The receivers say they have been ignored by Ticket Rocket’s director Matthew Davey since their initial correspondence with him.
‘‘. . . the director has not responded to our recent requests for information, which has been disruptive to the receivership process,’’ the report said.
Matthew Davey is understood to have returned to Canada.
The receivers say there are $2.8 million in unsecured claims, the majority of which has come from promoters contracted with Ticket Rocket.
Ticket holders have made claims for $243,000, but receivers were still trying to determine the status of those refunds.
The receivers sent a clear warning some of the promoters and ticket holders were going to miss out on getting what was owed to them.
‘‘While the total claims of promoters and ticket buyers are still being quantified, their claims are clearly substantially more than the funds held by Dash and the Company on appointment.’’
Mr Davey’s company owed just short of $5 million to the Bank of New Zealand, considered a secured creditor.
‘‘We understand a significant number of refunds were processed through the bank accounts, resulting in a large overdrawn balance,’’ the receivers said.
‘‘This was due to refunds being paid to customers for events cancelled due to Covid19, when the ticket proceeds were not held in the company or Dash bank accounts.’’
Two preferential claimants were also listed in the report as Inland Revenue (owed $354,000) and staff (owed about $25,000).
The Crusaders rugby organisation is listed as a purchase money security interest (PMSI) creditor, owed $187,000.
As a PMSI creditor, the Crusaders get priority over other creditors.
The receivers have worked alongside the liquidators, who were appointed last month when Fortress Information Systems Ltd was placed in liquidation in the High Court at Dunedin.
In the liquidation documents the Hurricanes rugby organisation was owed $186,149 and the Crusaders claimed $155,549.