Administrators for troubled Sounds music companies are scrambling to secure stock that was moved from one firm to the other without payment.
Court-appointed officials for Sounds music store companies Icon Digital Entertainment and Newmarket Entertainment have been negotiating ownership of the stock.
Icon Digital Entertainment creditors meet in
Auckland next Thursday to consider a report from administrators BDO Spicers that recommends Icon should be placed in liquidation. But in advance Icon creditors will be looking at a Companies Office report from Bryan Williams, the liquidator for Newmarket Entertainment which owned one Sounds store in Newmarket.
Both companies are controlled by Icon director Stephen Dods.
Icon joint administrator Stephen Tubbs confirmed he had held discussions with Williams.
Dods had confirmed he had transferred Icon stock to Newmarket, he said.
"It bears further investigation as to why this was done and we are in negotiations with Newmarket Entertainments liquidator saying that company has our stock.
"He [Williams] is reviewing the situation," Tubbs said.
Williams' office said a report on Newmarket would be lodged with the Companies Office next week.
The BDO Spicers report advised that it was looking at matters that warranted investigation for possible offences under the Companies Act.
Icon ran up losses of $9.6 million in the 14 months to October 31 last year, averaging $830,000 a month from April to October.
