The first liquidation report of a company linked to Wairarapa events shows it folded with debts initially estimated at more than $300,000.
Cactus Events and Sponsorship Ltd was put into voluntary liquidation last week, with Paul Vlasic of Auckland-based firm Rodgers Reidy appointed liquidator.
The company traded as Cactus Events and was linked to local events, including Wings over Wairarapa.
More than $35,000 was estimated to be due to employees, and over $280,000 was estimated due to Inland Revenue.
The first liquidation report, which was filed on Monday, said the company’s accounting system indicated $128,439.28 was due to be paid to the company. The liquidator will be taking steps to recover this.
The report said tens of thousands of dollars were due to employees, whose contracts had all been terminated.
“All employment agreements were terminated upon the appointment of the liquidator. The liquidator is aware of preferential wages and holiday pay claims totalling $35,071.72,” it said. Preferred claims under this category did not include those who had been directors of the company during the 12 months before the liquidation started.
The liquidator has not yet received a formal preferential claim from the Inland Revenue Department for outstanding tax obligations, but preferential tax debt was estimated in the Statement of Affairs attached to the report at $283,000.
The report set out reasons given by the directors for the liquidation.
“The directors have advised that the reason for insolvency was due to the company operating in a challenging environment which for the past few years has seen many events cancelled or significantly impacted due to both covid and weather events,” it said.
“A number of these events have been unable to complete their payment obligations to Cactus in full or in a timely manner.”
The report said that subject to further verification, the liquidator estimated there would be no funds available for unsecured creditors.
“However, recovery actions through insolvent transactions and actions against certain other parties may bring in additional funds.”
The report included a creditor’s claim form to prove debts or claims on the company. The form needs to be completed and sent to the liquidator by May 31.
It was too early to estimate a date for completion of the liquidation, with the next report due on or about November 4.
The directors of the company were contacted for comment, with one preferring not to comment and the other saying they were unable to meet the deadline.
