Little hope for unsecured creditors

Last updated 05:00 22/11/2012

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More than 20 unsecured creditors are unlikely to receive any money owed to them by CS Homes, a liquidator's report says.

Insolvency Management principal Iain Nellies and Paul Jenkins were appointed liquidators when company director Colin Murray Hiatt put the business into voluntary liquidation on November 7.

The first report says the company stopped trading a week before liquidation and its director cites the insolvency position to a disputed debt relating to a sub-contractor that is subject to a court action for recovery.

The liquidators say they had limited information to write the initial report because the company records needed some work to reconstruct them.

Liquidators are aware that five building projects in various stages of completion were left unfinished.

Among the homeowners left in the lurch were Southland Stags and Highlanders flanker Tim Boys and the Buchanan family, of Wreys Bush.

Industry insiders believe Mr Hiatt has gone to Australia, where his wife is working, and say he could owe more than $500,000 to contractors and suppliers in the region.

The report says a review of the building contracts had been carried out, along with meetings and discussions with most of the affected parties to gauge their positions.

Liquidators said there was a small amount of office furniture and equipment that was of minimal value. There was also a car, a trailer and some book debts owed to the company, and the director had not disclosed all of the company's assets.

Liquidators would further examine company records to establish if any assets had not been disclosed or if there was any action they could take to benefit creditors.

The report shows the amounts owed to creditors had still to be determined by liquidators.

Unsecured creditors include: RH Plumbing and Gas, Haden Baird, Nind Electrical Services, SJ Timpany Contracting, Kevin Clark Building and Installation Services, Level Line, Winton Flooring Specialists, Nigel Molloy Joinery, CH Faul & Co, Dunrobin Farm, Villa Veneer, T and K Boys, S and P King PD and JA Mc Gimpsey, GA and VM Horrell HRV, Inland Revenue, H&S Oudt, C S Roofing Southland, P O' Sullivan and Trademark Electrical Services.

Secured creditors included: easing Solutions Ltd, Fisher & Paykel ltd, Motor Trade Finances Ltd, ANZ Bank New Zealand, Southbound Building Supplies and PlaceMakers. Inland Revenue was the preferential creditor.

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- © Fairfax NZ News

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