Creditors miss out on $493k

A Feilding business has gone from being the cream of the crop to leaving dozens of creditors nearly half a million dollars out of pocket.

Manawatu Grain Seed and Saddlery was placed into liquidation by owners Chris and Sharon Malcolm last year.

The liquidation, run by Andrew Bethell of BDO, ended recently. In his final liquidation report, he said no creditors had been able to get any money back.

The Inland Revenue Department missed out on $12,000 and a former employee $10,000.

Secured creditors were owed $147,000. Sixty-three unsecured creditors had made claims totalling $324,000, but none were paid.

Among those creditors were Courtesy Ford Palmerston North, Palmerston North City Council and Manawatu Truck Services.

All up, creditors missed out on $493,000.

Liquidators squeezed $8500 out of the company, mostly from the sale of stock and vehicles.

Previous liquidation reports had valued the assets at $128,062.

The money made from the sale of assets all went on paying bills for the liquidation.

Previous liquidation reports stated the business was successful from its inception in 2009 until running into difficult trading conditions and bad debts in 2012.

"To address the situation . . . the directors explored refinancing and other options for cash injection into the business," a liquidation report said last year.

"It was with the failure of these attempts in late January 2013 that the directors concluded . . . the company needed to be placed into liquidation."

The Malcolms explored refinancing and reinvestment, but those options failed, forcing them into voluntary liquidation.

The business was the winner of the best rural business and supreme awards at the Feilding Excellence in Business Awards in 2011.

Manawatu Standard