Shareholders in White Island Tours have made a special resolution, resulting in liquidators being appointed to the business, Companies Office records show today.
The $5m was frominsurance proceeds and was flagged to be settled already.
Gareth Hoole and Ray Cox of Ecovis KGA in Newmarket are now in charge of assessing the assets and liabilities of the company incorporated in 2005, operating guided tours to the island.
Ngāti Awa Group Holdings of Whakatāne wholly owns the company and was the shareholder which declared insolvency.
Twenty-two people died and 25 others were injured when the island erupted in 2019.
Liquidator Gareth Hoole said today the company had few assets and it was not a huge job to handle the liquidation of that business.
“My understanding of it is there really are no assets and we are trying to wrap it up. Whatever insurance money was coming was going to meet claims and there’s just the substantial fine by WorkSafe,” Hoole said.
In March, Richard Raymond, the counsel for White Island Tours, said the reparations would be paid by insurance.
Richard Raymond KC acting for White Island Tours Ltd at the Whakaari/White Island sentencing hearing in the Environment Court, Auckland, on February 26. Photo: RNZ / Marika Khabazi
“Fortunately, WIT had the foresight to take out the appropriate insurance ... and that policy enables reparation to be paid to victims of health and safety breaches. That will be paid promptly, certainly within the next 21 days or so, to the Ministry of Justice, who are tasked with administering the collection and the payment out of reparation to the victims,” Raymond said earlier this year.
However, he also said the company was not in a position to pay the $517,000 fine.
“That is a more difficult issue. The company doesn’t have any funds to pay a fine, given that the company has not been trading for over three years, has no assets and has considerable debts.”
He said White Island Tours was likely to close its doors.
“The timeframe for the discussions on liquidations will take place over the next week to two weeks, and the decision will be made by the only remaining director of the company as to whether to place the company into liquidation or whether there are advantages for keeping it going a little longer.
Tourists head towards the crater of the volcano on Whakaari/White Island. Photo / Alan Gibson
“But it’s likely that the company will go into liquidation,” Raymond predicted in March.
Raymond said a coroner’s inquiry into the tragedy was set to begin next year.
Companies Office records show the company has only one director: Bernard Paul Quinn of St Mary’s Bay.
Owner Ngāti Awa Group Holdings has seven directors: Whakātane’s David Ross Glover, Mangere Bridge’s Heteraka Wesley Hudson, Ōrākei’s Tiaki Blake Hunia, Pt Chevalier’s James Daniel Mather, Whākatane’s Regan James Studer, Wellington’s Daniel James Tulloch, and Quinn.
That company was incorporated in 1990 and its activities are administration services.
WorkSafe charged boat and helicopter tour providers for their failure to conduct adequate risk assessments and implement controls.
It said White Island Tours carried people to the island on boats and had four staff and 38 customers on the island at the time of the eruption.
Of the 22 people who died, 19 were customers of White Island Tours and two were employees. A further 19 customers and two employees were present and suffered injury.
At the time of the eruption, there were three White Island Tours boats either at the island or returning from the island.
“WorkSafe charged White Island Tours in relation to its failure to conduct adequate risk assessments and implement controls to ensure risk of serious injury and death to tourists and workers was reduced,” Parkes said.
The first report is yet to be issued on White Island Tours’ liquidation.
That should give a list of any assets the business has and who its creditors are. Which parties are owed money might also be stated.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
