Liquidation unlikely to have funds for creditors

❛ Subject to further verification, I estimate that there will be no funds available for unsecured creditors

DUNEDIN building company Highland Homes has been put in liquidation and all of its assets will be sold at public auction.

Yesterday, the liquidator, Rodgers Reidy director Paul Vlasic, said the amount the company owed to others would be determined through his investigation.

However, he warned those owed money by the company it was unlikely they would get it back.

According to Highland Homes director Craig Davidson, the reason for insolvency was the Covid19 pandemic and ‘‘difficult trading conditions’’, Mr Vlasic said in his first liquidation report for the company.

All assets owned by the company would be sold at public auction and any expressions of interest should be directed to his office, Mr Vlasic said.

His investigation would determine if there were any assets he was unaware of, and further, if there were any other potential ways to recover money from the business.

An investigation into the company’s books, records and affairs would be done to determine if any insolvent transactions had taken place and if there had been any breaches of legislation.

If there had been any, Mr Vlasic would consider making any claims that would increase what was available to be repaid to creditors.

If sufficient evidence

Liquidator Paul Vlasic

existed, breaches of legislation would be reported to the authorities, he said.

‘‘Subject to further verification, I estimate that there will be no funds available for unsecured creditors.

‘‘However, recovery actions through insolvent transactions and actions against certain other parties may bring in additional funds,’’ he said.

A schedule of creditors attached to the report lists more than 60 businesses or organisations owed.

The Inland Revenue Department had yet to make a claim for any outstanding tax obligations, Mr Vlasic said.

Highland Homes was incorporated in October 2015, and ceased trading when shareholders Mr Davidson and Alice Hurst appointed Mr Vlasic last week.

It was too early to estimate a date of completion for this liquidation, Mr Vlasic said.

He gave creditors until September 30 to make their claims and to establish any priority their claims might have.