Restaurant’s assets will not cover IRD debt
The sale of Hammerheads Restaurant’s assets won’t cover all of what the collapsed eatery owes Inland Revenue, say liquidators.
However, the liquidators say they may have a claim over an “insolvent transaction” after a review of the restaurant’s accounts.
Hammerheads had operated from its premises on Tamaki Drive for 25 years until Inland Revenue appointed liquidators on April 24.
Liquidators revealed in June that the company operating the eatery owed Inland Revenue $377,818.
The latest report from the liquidators, PwC, says the landlord of Hammerhead’s building has entered into negotiations for someone else to take over the lease. The liquidators have also agreed to sell the business’ assets to the party who will take over the site. Co-liquidator Craig Sanson could not say who this was.
“This agreement is conditional on the purchasers completing financial due diligence and successfully negotiating a lease agreement with the landlord,” the liquidators said in a report posted to the Companies Office yesterday.
Sanson said yesterday that there would still be a substantial shortfall owing to Inland Revenue following the sale.
However, the liquidators’ report also revealed a potential claim over an “insolvent transaction” from the company’s accounts.
“Accordingly, the liquidators sent the recipient a letter of demand. . . . the recipient responded to us rejecting the demand and provided an offer to settle the claim,” Sanson said in the report.
“The liquidators’ assessment of the offer determined that it was not sufficient . . . . The liquidators then engaged solicitors to provide legal assistance after further negotiations failed to yield a settlement. We are awaiting a response from the recipient.”
An insolvent transaction is one which liquidators consider they can claw back from those who received the funds.