“To date, the liquidators have sent notices to the company’s officers and professional advisers pursuant to Section 261 of the Act requesting the delivery of the company’s books, records and legal files. The liquidators have issued notices to the secured creditors asking for details of their debt and securities and have engaged with the receiver to ascertain the position of the company,” the report noted.
It was too early to comment on any recoveries and the likelihood of a distribution at this stage.
According to their report, Auckland Vehicles owes more than $720,000 to the Inland Revenue in GST and EMP (employment activities).
Trade creditors, who are considered unsecured creditors, are owed $378,647.
A figure has yet to be determined for secured creditors.
Creditors include ASB Bank, ACC, Baycorp, BP Oil New Zealand, Castrol New Zealand, Finance Now, Hyundai Motors New Zealand, North Shore Toyota and Supercheap Auto.
The liquidators said the company had no tangible assets as of the date of the liquidation. However, the receivers were still collecting outstanding debtors.
Auckland Vehicles sold its assets to automotive dealership Winger Group in July, before it went into receivership.
Winger Group confirmed to the Herald last week it bought the assets and relocated the business. It also took on 53 staff - “more than half” of Auckland Vehicles’ workers.
Winger Group is not associated with the receivership or liquidation of Auckland Vehicles.
The liquidators have requested the sale documentation be reviewed.
Legal proceedings
The report also notes liquidation proceedings have been filed by Veara Investments against Auckland Vehicles. According to the Companies Office, Veara is involved in the rental of commercial property. Its directors are Chris Arbuckle and Chad Cathcart. The company is owned by HWI Nominees.
Grant John Vincent is the sole director of Auckland Vehicles and a 99% shareholder, with Rachelle Vincent owning 1%.
Shareholders put Auckland Vehicles into liquidation, but before that the company was in receivership, with Thomas Rodewald of Rodewald Consulting Ltd appointed receiver of the company on August 9.
Vincent and a trustee of his family trust appointed the receivers.
The first receiver’s report is due on October 16.
‘Pretty tough out there’
Last week, the Motor Trade Association’s sector manager for dealers Larry Fallowfield told the Herald feedback he’d received from members was that this was one of the toughest downturns they’ve faced.
“Dealers have struggled this year. They’re still tracking a long way behind last year, which was quite soft,” he said.
“It’s pretty tough out there, and it’s not just car dealerships - [the] marine industry is being hit heavily, the motorbike sector is also taking a hit.”
In April, long-standing Napier car and boat dealership Euro City Limited went into voluntary liquidation owing close to $1.2m to 148 creditors.
Last month, two boating businesses in Mount Maunganui and Morrinsville - Sportcraft Marine Ltd and Sportcraft Boats Ltd - were placed into liquidation owing more than $1.5m in unpaid taxes and loans.
And in February, family-owned boat business Trev Terry Marine was placed in receivership owing $16.58m to creditors.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
