Health tech company liquidator finds around $1m owing

Haelthtech made software for the health insurance industry. Photo / 123rf

A short-lived start-up that made software for the health insurance industry collapsed owing almost $1 million - and the final tally could be higher as the liquidator waits for Inland Revenue’s claim.

Haelthtech New Zealand (yes, “Haelth” not “Health”) was founded in September 2019 - on what turned out to be the eve of the pandemic - with former Aetna Health NZ chief executive and Southern Cross Healthcare director Trevor Lynds and Simon Spratt as its founding directors. Lynds, who died in 2021, was involved in multiple health-related companies, including failed healthcare software maker Obsidium Holdings, of which he and Spratt were directors.

Inland Revenue applied to the High Court to have the Auckland-based firm placed in liquidation in a July 2023 hearing.

Daniel Zhang of McDonald Vague was appointed liquidator on February 5 and released his first report on February 17.

Spratt was the sole director at the time of the liquidation.

“The director advised the company was placed into liquidation due to the Covid-19 pandemic and the company’s main contractor cancelling the contract on a short notice,” the liquidator’s first report said.

Zhang told the Herald the software firm had been inactive for around 18 months by the time of his appointment.

The only significant potential asset is a shareholder current account with $244,663 overdrawn; Zhang says this collectable relates to Lynds as a deceased shareholder. The liquidator is still in the process of assessing if Lynds has a deceased estate, and if so if funds can potentially be recovered from it.

The estimated total owing is $894,624, with Inland Revenue yet to submit its claim. The first report estimates that IRD is owed a total of $308,670, based on information supplied by the company.

Haelthtech also owed $180,331 in loans and $405,623 to trade creditors including Google New Zealand and project services consultancy LPS New Zealand.

ACC is also listed as a creditor.

Spratt was the majority shareholder. TDI Ventures, based in Singapore, and J & J International Health Care, based in the Netherlands, owned small stakes.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.