Sale of Hammerheads Restaurant's assets falls short

Hammerheads restaurant, which occupies a prime spot in Auckland's Okahu Bay, has gone into liquidation. Photo / Janna Dixon

The sale of Hammerheads Restaurant's assets won't cover all of what the collapsed eatery owes Inland Revenue, say liquidators.

However, the liquidators say they may have a claim over an "insolvent transaction" after a review of the restaurant's accounts.

Hammerheads had been one of the longest-running on Auckland's waterfront, having operated from its premises on Tamaki Drive for 25 years until Inland Revenue appointed liquidators on April 24.

Liquidators revealed in June that the company operating the eatery owed Inland Revenue $377,818.

The latest report from the liquidators, PwC, say the landlord of Hammerhead's building has entered into negotiations for someone else to take over the lease.

The liquidators have also agreed to sell the business' assets to the party who will take over the site. Co-liquidator Craig Sanson could not say who this was.

"This agreement is conditional on the purchasers completing financial due diligence and successfully negotiating a lease agreement with the landlord," the liquidators said in a report posted to the Companies Office yesterday.

Sanson told the Herald today that there would still be a substantial shortfall owing to Inland Revenue following the sale.

However, the liquidators' report also reveals a potential claim over an "insolvent transaction" from the company's accounts.

"Accordingly, the liquidators sent the recipient a letter of demand. After reviewing this demand, the recipient responded to us rejecting the demand and provided an offer to settle the claim. The liquidators' assessment of the offer determined that it was not sufficient given the total value of the voidable claim. The liquidators then engaged solicitors to provide legal assistance on this matter after further negotiations failed to yield a settlement. We are awaiting a response from the recipient," Sanson said in the report.

An insolvent transaction is one which liquidators consider they can claw back from those who received the funds.