Directors Andrew Chalmers and Zane Cleaver have proposed to pay non-secured creditors 20 cents for every dollar of debt as a full and final settlement to be paid within 20 working days of its approval.
Whangarei trucker Simon Reid, who is owed $25,107, has written to both companies on behalf of the creditors.
He expressed bitter disappointment at the failure of the companies to provide financial information.
"We have been asked to sustain a significant loss on the basis of flawed information and procedures," he said in a letter to Brent Hempel, who has been appointed by the board to facilitate the proposal.
Mr Reid pointed to alleged flaws in the proposal and the way any postal ballot, which would determine whether they would accept the 20 per cent payment, was conducted.
He said voting papers that were circulated to non-secured creditors gave a short response time and the results of the postal ballot were not available more than one week after voting closed.
After having received professional advice from an experienced chartered accountant who specialised in insolvency matters, Mr Reid said it was doubtful the directors' proposal met the criteria laid down in the Companies' Act.
"It is our right to know why the business has failed and where the assets have gone.
"Many of us believe there is more equity in the plant and equipment than we are being led to believe and we consider it appropriate that the directors front up and provide full and frank disclosures of why the business is in the state it is, what has happened to the money and why we should be asked to take such a substantial discount," he said.
Mr Reid warned the directors the issue would not go away and the creditors were considering options, including the involvement of a liquidator and legal action.
Neither the board of directors nor Mr Hempel responded to written questions by edition time.
