Liquidators of a Christchurch scaffolding firm which owes more than $400,000 to creditors will investigate whether the company traded while insolvent and whether the company or its officers broke the law.

Independent Scaffolding Supplies Ltd, trading as Advanced Scaffolding, was set up by former bankrupt Richard Lascelles. The company was placed in liquidation and receivership in July, owing more than $400,000 to creditors including Inland Revenue.

In his first liquidator's report on the company, PricewaterhouseCoopers partner Malcolm Hollis said the company had five creditors claiming security over various company assets, but according to receiver Murray Allot, assets listed in Independent Scaffolding's records were not actually owned by the company.

Hollis said he would investigate the actions of the directors to ensure all relevant legislation had been complied with.

There was an estimated shortfall to unsecured creditors of $773,000, he said.

The company was placed in receivership on July 24 by Pohutukawa Bays Ltd, who appointed Allott as receiver. PricewaterhouseCoopers partners Malcolm Hollis and Maurice Noone were appointed liquidators the same day, following a court application by Inland Revenue.

A second receiver, John Gilbert of C & C Strategic Ltd, was appointed by Working Capital Solutions Holdings Limited, also on July 24.

Independent Scaffolding was part of a group of related companies contracting services and supplies to various projects associated with the Christchurch earthquake recovery. It sourced and supplied scaffolding materials to related companies and directly to independent contractors in the Christchurch area, Allott said in his first receiver's report on the company.

Associated companies Graterlea Limited was in liquidation and Equip Hire (2010) Ltd was in receivership.

The company's director is Daniel Stedmond and Taurus Trustee Services Limited is listed as shareholder.

Allott noted that Advanced Scaffolding director Daniel Stedmond was also a director of another company which was placed in liquidation in March this year, owing a significant debt to Inland Revenue for unpaid GST and PAYE.

- © Fairfax NZ News

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