Recapitalisation or sale are being considered by liquidators of the rest home. Photo / file
Recapitalisation or sale are being considered by liquidators of the rest home. Photo / file
An 18-bed aged care rest home might be sold after a “relationship breakdown” between shareholders who could not resolve issues and decided instead to call in liquidators.
Iain Shephard and Jessica Kellow of BDO described unusual circumstances behind the decision to look for buyers for the geriatric business, incorporated 24years ago.
Lady Joy Home, 64 Paterson St, Aramoho, Whanganui was incorporated in 1999 and for many years, has operated the aged-care facility and retirement home business, they said in their first report out last month.
“Following a relationship breakdown between the shareholders, professional advice was sought and the shareholders resolved to place the company into liquidation,” they wrote.
A matrimonial dispute is understood to be at the heart of the issue although the liquidators did not state that specifically.
The Companies Office list Stephen Charles Poynter and Suzanne Poynter, of Aramoho, Whanganui, as shareholders. Russell Wilkie McMurray is a trustee of the company. The Poynters are also directors.
The company is actively operating and houses 18 residents.
Shephard and Kellow intend to continue to trade the business in the hope of selling it as a going concern.
Options for either a sale of the business or a recapitalisation of the existing entity are being explored.
The same liquidators have also been appointed to a related company, Living Well nominees, that is the registered owner of the rest home’s land and buildings.
Lady Joy Home in Whanganui. Photo / Google Maps
A list of creditors released with the report named ANZ Bank, Accident Compensation Corporation, Inland Revenue, the Ministry of Health, Whanganui Insurance Brokers, St John’s Pharmacy, Vodafone, Whanganui District Council, Warehouse Stationery, Waste Removal and others.
The ministry appeared on a balance sheet as being owed $96,000.
Inland Revenue is estimated to be owed $16,000.
Eighteen employees were listed as being owed an unknown amount.
Shareholder advances were put at $148,000 and appeared as a debt owed.
Assets listed included $7800 of motor vehicles and plant and equipment of $51,000.
At this point, the overall shortfall owed to creditors was estimated before the costs of liquidation at $346,000, the initial statement of affairs said.
The Ministry of Health’s website noted Lady Joy had 31 beds.
“This rest home has been audited against the Health and Disability Services Standards. During the last audit, the auditors identified some areas for improvement,” the ministry said.
Not all staff employed had reference checks or police vetting undertaken. The home needs to fix that, the ministry said.
In 2018, the Herald reported Whanganui’s Nazareth Rest Home and Hospital was closing, leaving 41 residents to find a new place to live.
The Sisters of Saint Joseph of the Sacred Heart NZ Trust Board and Mary MacKillop Care NZ announced that with “deep regret”.
They said it was not sustainable to continue to use the buildings for rest home and hospital services.
While the buildings met current standards it would not be viable to continue future investment to remain compliant with legislation, they said then.
