Gisborne-based logging company Lift Harvesting in liquidation owing $1.5m to creditors - report

IRD successfully applied in the High Court at Gisborne to place Lift Harvesting Limited into liquidation. A report has revealed that creditors have claimed over $1.5 million so far. Photo / Gisborne Herald

Creditors are claiming over $1.5 million from a Gisborne-based logging company in liquidation, most of which is allegedly tax owed to the Inland Revenue Department.

IRD successfully applied at the High Court in Gisborne to place Lift Harvesting Limited into liquidation on July 11.

The Insolvency and Trustee Service, the Official Assignee’s Office under the Ministry of Business, Innovation and Employment (MBIE), was appointed as liquidator and released its first Insolvency Summary report on Monday.

The summary of claims in the report gives an estimated total claims figure of $1,562,891.59, with 10 unsecured creditors, four secured creditors and two preferential unsecured creditors.

The largest amount allegedly owing is to IRD, with it claiming $461,290.33 as a preferential unsecured creditor and $679,992.76 as an unsecured creditor. It has also claimed $1518.18 in applicant creditor costs for a total of $1,142,801.27.

“The cause of this liquidation appears to be related to a failure to account for taxation compounded by the regional cyclone experienced in January 2023,” the report says, under the subheading “additional information”.

“The liquidator has established contact with the company director, and a statement of affairs has been received. The liquidator is conducting searches and investigations through various databases and other avenues open to him to locate any further asset interests that are of benefit for creditors in this liquidation.”

Other creditors include NZ Transport Agency, radio communications company Colvins, Chartered Accountants DPA Limited and forestry industry adjacent companies Forest Management Solutions, Forestry Leasing Solutions, A P Plant & Machinery, Shaw’s Wire Ropes and Log Lease Limited.

Vehicle finance company Motor Trade Finance Limited is also listed as a creditor, but a specific claim amount was not noted in the first report.

Company director Izaac Jay Davy has been approached for comment via email.