Failed brewery had three mortgages
The West Coast Brewery failed with three mortgages hanging over the company's Westport brewery, the liquidators say.
The Christchurch High Court ordered the craft brewery into liquidation a month ago due to unpaid tax.
The brewery makes the West Coast brand of craft beer and Good Bastards beer, selling to sister company the West Coast Bar & Grill on Main North Rd and other customers.
The bar and grill and parent company Westcoast Brewing are unaffected by the liquidation and continue to trade.
In their first report, liquidators Iain Nellies and Wayne Deuchrass said they were running the business to make sure it could sell at the best possible price.
They intend to sell the company's assets by public tender. The West Coast Brewery director Paddy Sweeney has said he plans to buy the brewery back from liquidation out of his own pocket.
The liquidators say there are two registered mortgages over the brewery property and they were ''aware of an unregistered mortgage'' as well.
He would not say how much the mortgages were for because it may affect the purchase price of the brewery.
About $265,000 is owed to unsecured creditors, a further $133,700 is owed to preferential creditors.
The IRD is owed about $90,000 of the preferential claims - the principal tax debt - and $144,000 of the unsecured claims are IRD penalties and interest.
The amount of intercompany debt between the brewery and its parent Westcoast Brewing is still be worked out, however it was in the millions, Nellies said.
In the early days of the company, Westcoast Brewing had advanced its subsidiary money to buy the brewery and other assets to set the business up, he said.
However there was ''a whole pile'' of transactions backwards and forwards between the two companies in the years since, and he wanted to make sure the net amount was accurate, he said.
Westcoast Brewing has 371 investors, and Queensland-based Sweeney is its sole director.
Meanwhile, the brewery is owed $81,500 and its stock and beer in production is valued at about $195,000.
- © Fairfax NZ News
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