Help unlikely for creditors
Unsecured creditors are unlikely to receive money from two Palmerston North businesses forced into liquidation by the Inland Revenue Department.
Grand Beer Cafe and Steves Kitchen went into liquidation on May 27 after struggling with increased costs and lack of sales.
Both companies are registered to Stephen Bragg, Anne Bragg and Michael Bragg.
Steves Kitchen, which operated as Roma Restaurant, is also listed as a shareholder for the Grand Beer Cafe. Liquidator Sonia Lyons released the first reports for both companies this month.
The reports showed unsecured creditors have claimed to be owed a combined $344,245.47 from both companies.
At this stage there are no assets for Steves Kitchen and only a book debt of $2000 for The Grand Beer Cafe.
Unsecured creditors were unlikely to receive any money at this stage, Lyons said.
She said petitioning creditors, preferential and secured creditors, such as IRD and previous employees, would be paid first.
The Grand was purchased by Glenn Warren for $50,000 earlier this year.
Roma Restaurant ceased trading in February when the premises were vacated and taken over by Flavia Alves and Rustam Nomozov.
"The liquidator will investigate the sale to confirm it was sold for fair value," the report said.
"The liquidator will investigate the disposal of the business [Steves Kitchen].
"However, there are a number of security interests who will have priority over the company's assets and undertakings."
The liquidation process is expected to be complete by October.