Creditors won't get a bean, says liquidator

The managing director of Nelson company Cellar House has been declared bankrupt after a High Court decision that made him personally liable for almost $3 million of the company's debts and liabilities.

Cellar House was placed in liquidation in 1999 at the request of the Customs Service. Donald Allen was initially sued for $11 million for failing to keep proper records and for reckless trading.

He was found to be personally liable for $1.75 million of the company's debts and liabilities, plus interest of almost $3 million. Liquidator Robert Walker said creditors would not see any payment, as they were next in line after his fees as liquidator and payment of $6 million to Customs . "No creditors will ever get a bean."