The liquidator’s report shows that East Imperial owes an estimated $22.2 million to creditors before the costs of liquidation.
Inland Revenue is the sole preferential creditor and is owed roughly $213,000, with secured creditors owed $60k, although a distribution of $60,112 has been made.
A further $604k is owed to unsecured creditors based on claims as of the date of the report, but the largest money owed is to intercompany liabilities, a significant $21,683,000.
Other creditors of the company include BNZ, ACC, Mainfreight and MYOB, although amounts owed to them are unknown.
Webb and Campbell have been able to recover $285,896 from the sale of assets, such as office furniture and fittings, as well as remaining stock.
Liquidators were required to negotiate with third parties for the release of stock held off-site based on proposals for settlement of amounts due from any proceeds of sale.
The company also owned assets including its branding/marketing materials, social media platforms and recipes.
However, liquidators confirmed that the East Imperial trademark was not owned by the company but by its shareholder, East Imperial PTE Limited, a company incorporated in Singapore.
Given the trademarks were not owned by the company, the liquidators were unable to sell the business as a going concern and were limited to the sale of finished stock and other assets, despite a number of expressions of interest for the purchase of the business.
The liquidators commenced negotiations with two interested parties and a sale was completed for the transfer of assets, including available intellectual property (such as recipes) and web domains.
International issues
Intercompany amounts due from related companies were identified by the liquidators, including East Imperial Beverages Corporation LLC, a company registered in the US, and East Imperial Beverages PTY Ltd, a company registered in Australia.
The amount owed by East Imperial Beverages Corporation LLC was significant, according to the liquidators, and demand was made for payment.
Following inquiries, Webb and Campbell determined the US company is no longer trading and may be in the process of dissolution, with no funds expected to be recovered.
Demand was also made to East Imperial Beverages PTY Ltd, of whom East Imperial Ltd is the sole shareholder.
Discussions with the directors of the company by the liquidators found the Australian company is no longer trading and is not in a position to make repayment of the debt. Likewise, no funds are expected to be recovered.
Based on recoveries made, the liquidators have made payment in full to employees for all unpaid entitlements to the sum of $31,016.
In total, liquidators have distributed $317,048.
The liquidators expect to be able to make a further distribution to Inland Revenue on account of its preferential claim, with any available surplus funds to be distributed to them.
Webb and Campbell expect to complete the liquidation within the next three months.
Founded in 2012, the Auckland-based company, which is listed on the London Stock Exchange, manufactures and supplies mixers for spirits, such as tonic waters and sodas.
It sold over 33 million bottles in more than 20 countries. Its products included Old World Tonic Water, Grapefruit Tonic Water, Yuzu Tonic Water and Mombasa Ginger Beer.
The intention to appoint liquidators was signalled in April 2024 when its shares were suspended after it was unable to pay out a requested redemption of loan notes totalling £2.2 million ($4.78m) to INL Investment Ltd from August 2023.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
