The collapse of a recycling company chaired and part-owned by NZ First MP Denis O'Rourke has left unsecured creditors - including the Christchurch City Council he was once a member of - owed nearly $1 million and with little prospect of repayment.
Opawa-based Becon opened in 2007 aiming to become a regional player in the waste management business, but by 2010 its doors were closed and in August last year it went into liquidation.
Liquidators Keiran Horne and Craig Melhuish said that when they took charge of Becon, 34 unsecured creditors were owed $837,448, and the only assets of the company were $845 in the bank, a large roller door and $55,000 owed from former clients.
The roller door was sold for $1531 and debts of $31,979 have been collected but the prospect of any payment to unsecured creditors is rated as "very unlikely".
O'Rourke is Becon's founding chairman and a 12 per cent shareholder. He entered Parliament last year ranked seventh on the NZ First party list.
O'Rourke said he stood aside as chairman more than a year before liquidation and despite remaining a director claimed he had little control over the company from that point on.
- Sunday Star Times
Have you had a ticket in the last five years?Related story: Canterbury speed camera use rises sharply