Creditors owed $1m after liquidation of Southern Lakes building company

The company was unable to pay creditors. Photo/Getty Images.

Trade creditors are owed more than $1 million by a Queenstown building company which went into voluntary liquidation this month.

Liquidators Colin Gower and Tim Ward, of BDO, were appointed by Fowler Homes Southern Lakes Ltd (FHSL) shareholders on March 15.

The liquidators' first report, released last week, said the company held a licence agreement through Fowler Homes New Zealand for residential house builds in the Southern Lakes.

"The director has attributed the liquidation to be the result of the inability to collect two historic debts, which has impacted the company's cashflow and ability to pay the company's creditors," the report said.

The liquidators said there were limited prospects of funds being available for payment to creditors, other than those who held specific security or had a preferential claim.

Unsecured trade creditors are owed $1,099,189.

Secured creditors are owed $56,833. Of that, $52,381 is owed to the Inland Revenue Department. The rest is owed to employees.

Assets available for preferential creditors totalled $1,015,374, leaving a $70,970 shortfall.

The report said the company "ceased to trade" before the liquidation.

A total of 96 creditors are listed in the first report.

Almost 50% of them are from either Queenstown or wider Central Otago.

Creditors had until April 30 to make claims.

- Otago Daily Times.