Debt repayment unlikely after fraud
A company directed by fraudster Peter Joseph Nitschke has no chance of paying its debts, with liquidators' investigations revealing it held no assets.
In the High Court at Palmerston North, Waituna Valley Transport was placed into liquidation over an unpaid tax bill.
As well as being its director, Nitschke was a 50 per cent shareholder in the company, along with Janie Kathleen Nitschke.
Peter Nitschke is serving a jail term of two years and three months for fraud relating to $2.3 million he wrongly obtained while working as operations manager for family business Capehorn Farming.
Waituna Valley Transport was set up to cart livestock for Capehorn, according to a progress report from the transport company's liquidator David Vance, of Deloitte.
He found the company did not have a single asset, but owed creditors $179,211.
Included in that was $76,538 for preferential creditors, which would likely be the unpaid tax owed to Inland Revenue.
In court it was said the tax shortfall was made up of GST and income tax, as well as overdue Kiwisaver payments.
Mr Vance's report says Waituna Valley Transport's bank account was closed in 2010 and the last financial statements available were from March 31 that year.
"Due to the director being incarcerated, it has been difficult to obtain information and details of the trading activities of the company.''
Several vehicles in the company's possession in 2010 were probably sold in May 2011, but Mr Vance said he was yet to find out how the sale proceeds were distributed.
Capehorn went into receivership just before Christmas 2010. Nitschke is facing bankruptcy as the Bank of New Zealand chases him for $841,942.