Development firm heavily in debt to architect
A liquidator is about to embark on a "voyage of discovery" to find out just how a Palmerston North-based development company ended up with $300,000 in debts.
Valor Ideal Ltd, which was owned by Uruguayan investors and run by former YoungHeart Manawatu chairman Paul Barris, has been handed to liquidator John Managh and Associates Ltd.
Mr Barris was in Wellington as Associate Judge Christiansen gave his decision in the High Court at Palmerston North yesterday.
Speaking to the Manawatu Standard, Mr Barris said he expected the decision and was philosophical about the future.
"It's what happens and I respect the process. I'm in Wellington now and I've got plenty to look forward to down here."
Court documents show Valor Ideal has debts of $301,292, including $161,624 to a single company - Proarch Architects Ltd.
Before the liquidation Mr Barris had been outspoken about what he perceived as a poor Palmerston North commercial property climate, with decreasing rental income and no hope of growth.
Mr Barris said yesterday there were a number of things that had contributed to the company running up the level of debt that it had.
He said one of the main bills the company could not pay was related to a development at the North-East Industrial Park. He would not elaborate.
John Managh, a liquidator from Napier, said he had not heard of Valor Ideal before he was appointed liquidator and therefore much of the next two months would be a voyage of discovery.
Identifying how much of the company's former $10.4 million property portfolio was able to be sold, as well as how much each creditor was owed was a priority, Mr Managh said.
Kevin O'Connor and Associates Ltd, the company that asked for Valor Ideal to be put into liquidation, did not wish to comment.
Calls to Proarch Architects went unanswered.
- © Fairfax NZ News
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