The two companies that plunged the Chapel Street Family Doctors surgery into liquidation owe a debt of more than $1 million, reports by their liquidators have shown.
Wairarapa Medical Limited (WML) and Wairarapa Health Centre Limited (WHCL) - both formerly directed by David and Carolyn Nixon, owe $869,000 and $176,000 respectively,
the Deloitte reports show.
WML was the entity of a group of four companies that provided medical services and employed the staff at the Masterton clinic, while WHCL owns no assets but held the sub-lease and arranged sub-tenants for other areas of the premises to other health providers. Listed among WML's creditors are Wairarapa District Health Board, the Chapel Street Pharmacy and Masterton Mitre 10, while WHCL's creditors include D.R. Borman and Masterton District Council.
"Following discussions in May 2009 between the secured creditors and the Wairarapa Community PHO, the company engaged accountants to conduct a sustainability review of the four companies in the group," liquidators Barry Jordan and David Vance said.
"The accountants concluded that further capital was required, along with a creditor's compromise and a restructure if the medical practice was to continue trading."
After the group was unable to find an investor, its assets were sold and Wairarapa PHO commenced trading of the medical practice on July 1, 2009.
They had met Mr Nixon to "obtain an understanding of the background of the company and collect information relating to the affairs and liabilities of the company. We have arranged with the company accountant and with the directors to have all company records delivered to us."
In regard to subsequent action, there had been no assets identified to date that were "available to realise" and they were to complete a review of the company's records to establish whether there were any recoveries available.
"We are currently liaising with one secured creditor who has security over a motor vehicle. We understand that all other security interests have been assigned to Wairarapa PHO."
They expected the liquidation would be completed within the next six months, subject to any recoveries being identified.
