Invercargill businesses Hansen Insurance Services Ltd and Mr Green (Southland) Ltd are in liquidation and the director declared bankrupt, the first liquidators' reports say.
The reports say director of both companies, Barry Andrew Hansen, was adjudged bankrupt and his businesses put into liquidation by the Commissioner of Inland Revenue in the High Court in Invercargill on November 7, 2012.
Iain Nellies and Paul Jenkins, of Insolvency Management Ltd, were appointed joint liquidators of both companies.
Mr Hansen cited an inability to trade caused by personal health issues and the loss of personal liability insurance cover as the reason for liquidation of the insurance business and non-payment of franchise fees along with personal health issues as the reason behind the property maintenance franchise liquidation.
The report says the franchise ceased trading in June 2012 and the insurance company stopped trading in October 2011.
Liquidators were aware of various items of office furniture and equipment owned by Hansen Insurance Services, to be sold by public auction.
In addition, the liquidators were also aware of outstanding book debts owed to the company.
The report says liquidators had been told of possible action being considered by the company director prior to the liquidation and the merits of continuing the action would be investigated.
The ANZ Bank was the known secured creditor but the amount owed was not known.
The Commissioner of Inland Revenue was the one known preferential creditor, owed $22,719.69.
Four known unsecured creditors included KDS MacDougall Holdings Ltd, Commissioner of Inland Revenue, Sovereign Assurance Co Ltd and William Todd & Co Ltd.
Until the liquidators had examined all the company records, it was not possible to determine whether a dividend would be paid to creditors.
The liquidators are aware of a small number of assets owned by the Mr Green Southland franchise, but they were expected to be of minimal value and sold by public auction, the report says.
There were no known secured creditors and one known preferential creditor - Commissioner of Inland Revenue, which was owed $45,334.55.
There were four known unsecured creditors: Commissioner of Inland Revenue, Brookland & Associates Ltd, Colin Bye and ANZ Bank Ltd. The total amount owed was yet to determined.
The report says it looked unlikely there would be funds for a dividend, which would be confirmed after a full examination of the company records.
- The Southland Times