Creditors left out of pocket
Outdoor screen company MonstaVision's failure has left a Fisher & Paykel subsidiary and unsecured creditors out of pocket.
The light-emitting diode (LED) big screen business, MonstaVision Holdings, was placed into receivership in September last year.
Subsidiary MonstaVision (NZ) Events was also placed into receivership in September.
A report from receiver KordaMentha said reducing revenue and a significant debt burden hampered the company's ability to grow and renew its rental LED screens.
The company had failed to raise new capital and as a result of a forecast cashflow shortfall it requested Bank of New Zealand appoint receivers.
MonstaVision Holding's assets included one LED screen and its shareholdings in its subsidiary company, MonstaVision (NZ) Events.
The subsidiary owed its parent $7.6m, the receiver said.
MonstaVision (NZ) Events' primary assets related to its rental LED screen stock and associated assets including truck and trailer units fitted with screen mounts. It had accounts receivable totalling $130,000, the report said.
KordaMentha said the majority of the debt was owed to BNZ for a $1m term loan facility held by the parent company.
A further $533,000 was owed by MonstaVision (NZ) Events to BNZ that was cross-guaranteed by MonstaVision Holdings.
The Inland Revenue Department (IRD) was owed about $84,000 by the parent company.
Staff were owed $89,000 by MonstaVision (NZ) Events. About $32,000 of this had been paid.
The receiver said the company and its assets were sold for $941,000 to competitor Oceania LED.
A shortfall was predicted to secured creditors.
Equipment Finance, a subsidiary of Fisher & Paykel Finance, was owed about $76,000 by the parent company.
KordaMentha said it anticipated there would be no funds available for Equipment Finance and unsecured creditors due to the shortfall to secured creditors.
Liquidator McGrath Nicol was appointed to the company in November last year.
Its first liquidator's report lists 65 unsecured creditors that will miss out on repayment of debts including the Basin Reserve Trust and Sport Taranaki.