A Blenheim vineyard company has been forced into liquidation after racking up more than $1.2 millon in debt.
Knox Vineyards shareholders put the company into liquidation on January 31 after they could not make their mortgage repayments or pay for the operating costs of the company.
Liquidator John Scutter released his first report on Friday. He described the company as "hopelessly insolvent".
Mr Scutter, of Fervor Limited in Paraparaumu, said Knox Vineyards owed $1m to a company of similar or same ownership, $211,000 to the BNZ Bank and $6000 to a supplier.
Mr Scutter would not confirm the names of the companies that were owed money.
Knox Vineyards could also owe money to Inland Revenue but that could not be confirmed until the income tax and GST returns were completed, his report said.
The debts were unlikely to be paid based on the information Mr Scutter had, he said.
"Unfortunately they [debts] will get written off."
The directors of Knox Vineyards were Stephen de Castro and Geoffrey de Castro, according the Companies Office website.
Stephen de Castro declined to comment when contacted by the Express yesterday.
The company owned one property mortgaged to BNZ Bank but the rental income was insufficient to cover their repayments.
The company's shareholders were Eastlake Holdings Limited, Geoffrey de Castro, Annemarie de Castro, Sharon de Castro and Margaret de Castro. Stephen and Geoffrey were also the directors of J & R K De Castro, which went into receivership last year.
The company owed $3.7m and went into receivership on July 18, according to the Companies Office website.
There were five shareholders in the company - Stephen de Castro, Geoffrey de Castro, Sharon de Castro, Margaret de Castro, and Annemarie de Castro.
Stephen de Castro is also the director of another company, Eastlake Holdings Limited.
This company has the same five shareholders as J & R K De Castro.
- The Marlborough Express