Sunk aquatics firm has $400,000 debts

The city council's contracted aquatics operator LeisureCo Tauranga went into liquidation last month owing about $400,000 - and nearly 130 trade creditors are likely to get back no more than a fifth of the money they spent.
"The best I can hope for is 20c in the dollar," one creditor  said.
In their report, the liquidators have drawn up a list of 129 unsecured trade creditors under the LeisureCo Tauranga banner, and estimated they are owed about $340,000.
Most of the creditors are regular suppliers to the city's five swimming pool facilities - Mount Hot Pools, Baywave, Memorial Park, Otumoetai and Greerton.
LeisureCo New Zealand, which owned and leased assets (such as equipment) to LeisureCo Tauranga, also went into liquidation on July 13.
 Its parent company LeisureCo Australia, based in Adelaide and chaired by former world marathon champion, Robert de Castella, went into voluntary administration on July 7.
LeisureCo, which had operated for more than 25 years, employed more than 500 staff and managed eight sports centres in Australia, including gyms, gymnastic stadiums, dance studios and swimming schools.
LeisureCo Tauranga, incorporated on November 18, 2005 - two days after LeisureCo New Zealand was registered - operated the council-owned aquatics and leisure network.
Those assets were placed under the care of a council controlled organisation, Tauranga City Aquatics Limited (TCAL), which terminated LeisureCo's management contract at the end of June because "profits did not meet those budgeted for, resulting in negative cash flow".
The Bay of Plenty Times understands that revenue from the Tauranga operation was used to bolster a struggling LeisureCo Australia.
An analysis of the liquidators' estimated statement of affairs shows that LeisureCo Tauranga has overall debt of just over $400,000.
The liquidators said $164,695 in wages and holiday pay was unpaid, and there was $189,752 sitting in the bank. As preferential creditors, staff  would be one of the first paid.
The unsecured trade creditors were owed $340,028, Inland Revenue $25,000, and unexpired lease obligations cost $41,816. There was a provision of $108,640 for trade creditors payable to TCAL under the (management) contract, including unreconciled amounts.
Fixed assets were valued at $46,835 and inventories (stock) at $47,778, and a tax refund of $18,226 was due.
There were also two inter-related loans totalling $211,235 between LeisureCo New Zealand and LeisureCo Tauranga. LeisureCo New Zealand also owed $96,000 to LeisureCo Australia.
LeisureCo New Zealand had fixed assets valued at $130,658 and was due a GST refund of $21,287.
TCAL chairman Warren Banks said his organisation was talking to the liquidators about buying some of the assets, such as gym equipment and music systems.
"Some of it we own, some of it is leased - and we need to get an understanding of who owns what and how old it is," he said. "There's a whole bunch of things that need to be negotiated."
Mr Banks said TCAL wouldn't buy the memberships lists for the Baywave and Greerton gyms - "those members are our's".
The liquidators expect their investigations to be completed by January next year, when their next report will be made available.