Oamaru construction company in liquidation owes over $700k

This adds to the growing number of construction businesses to have gone bust. Photo/Getty Images.

An Oamaru construction company placed in liquidation last month owes creditors more than $700,000, an initial report released by liquidators shows.

Harper Enterprises (2007) Ltd, which operated under the name CKH Homes, was placed in liquidation on April 17 by a special shareholders' resolution.

The company's profile on the New Zealand Companies Office register lists Christopher and Karen Harper, of Oamaru, as its directors and joint shareholders.

Geoff Brown and Lynda Smart, of Rodgers Reidy Chartered Accountants, which has offices in Auckland and Christchurch, were appointed liquidators.

An initial report on the company's position was sent to all creditors on April 26, which also included information on the liquidation process and a claim form.

It showed the company owed 78 creditors a total of $719,521.

Of that, $23,284 was owed to preferential creditors; $60,279 to general security agreement holders; $187,291 to purchase money security interest holders and $448,667 to unsecured creditors.

In late April, Mr Brown told the Otago Daily Times the company was in the process of constructing five homes when it was liquidated.

"I understand that these customers have insurance with certified builders, so if the company is unable to complete the builds, this insurance should respond," he said.

The company's fixed assets would be sold at public auction, the report said.

The total value of the company's assets had yet to be determined.

The report said the company was incorporated in November 2007 and ceased trading on April 17 this year.

It was the G J Gardner Homes franchisee in Oamaru until the franchise agreement was cancelled by the franchisor in December 2017.

From then on, the company traded as CKH Homes.

It had two employees when it was liquidated and another seven were employed by C & K Harper Builders (2014) Ltd, which had "shareholder commonality" with the company was also placed in liquidation on April 17.

Mr Brown said an investigation into CKH Homes was being carried out to "investigate how the company was run and whether or not there are any claims against the directors for breaches of legislation".

It would also determine if the company had any assets liquidators were not currently aware of and potential options for recovery.

A second report will be issued in November.

- Otago Daily Times