Liquidators of Lowie Recruitment try to claw back funds

Graham Lowe's former company Lowie Recruitment Ltd was put into voluntary liquidation in December 2014 owing Inland Revenue $1 million after the business was sold. Photo / Wayne Drought

The liquidators of league coaching legend Graham Lowe's former recruitment company are trying to claw back funds from one of its shareholders.

Lowie Recruitment Ltd was put into voluntary liquidation in December 2014 owing Inland Revenue nearly $1 million after the business was sold to another firm.

Although the recruitment business still uses Graham Lowe's nickname, the former Manly, Queensland and Kiwis coach is no longer involved in it.

After the sale, the business was run as a division of Pounamu International, a company co-directed by former New Zealand Rugby League chairman Andrew Chalmers.

Pounamu was one of Lowie Recruitment Ltd's shareholders and the liquidators are now in a High Court dispute with that company over allegedly voidable transactions.

A voidable transaction is one where a liquidator claws back funds from one creditor to distribute to others.

Details of the dispute were revealed in a recently published High Court decision over the disclosure of documents.

Liquidators Jeffrey Meltzer and Mike Lamacraft say that in October 2014 -some eight weeks before they were appointed - Lowie Recruitment owed $1m to Pounamu.

They allege that during that month the company paid $1 million into Pounamu's bank account.

The liquidaors also allege that Pounamu, acting under a general security agreement, took control of the assets and accounts receivable of the company.

Melzter and Lamacraft allege that the transactions enabled Pounamu to get more
towards the payment of its debt than it would have received through the liquidation of the company.

Pounamu's position, according to the court decision, is that in October 2014 it loaned $1 million to Lowie Recruitment Ltd and that the firm repaid about $840,000.

It says it was entited to recover the funds it had advanced.

Meltzer and Lamacraft would not comment to the Herald this week Pounamu director Zane Cleaver could not comment. Chalmers is out of the country and could not be contacted.