Absolute Traffic Solutions liquidated over $1.1m Inland Revenue debt, 85 staff sacked

Auckland's Absolute Traffic Solutions is in liquidation owing more than $400,000 to staff. Photo / Facebook

Eighty-five Auckland staff have lost their jobs after the owners of a big Auckland traffic management business called in liquidators when its Inland Revenue debts climbed to $1.1 million.

An initial report by Albany-based liquidator Digby Noyce of RES Corporate Services showed Wiri-based Absolute Traffic Solutions owes $937,000 GST and $192,000 PAYE tax.

“There were 85 employees at the date of liquidation. All employment contracts were terminated on my appointment,” Noyce wrote last week.

Subsequent to issuing the report, Noyce told the Herald that about 60 staff had been re-employed on short-term contracts because he intends to sell the business.

Employees are listed in his report as being owed $452,000.

They appear in the accounts as preferential creditors but whether they will get their wages and salaries remains unknown.

“Our present view, based on information received to date, is that it is likely that a partial distribution may be available for preferential creditors.

“However recovery actions through insolvent transactions or other remedies may bring in additional funds, although it is still too early to express a view on such matters,” the report said.

The company operated a transport management business headquartered at Wiri, mainly providing services to the construction industry.

It listed its activities under the Companies Office as road construction, repair or sealing.

It could not pay Inland Revenue but for a time, complied with a payment arrangement struck between the parties.

But it failed to meet its obligations under that arrangement, so Inland Revenue issued a statutory demand.

Shareholders Jade and Amelia Fonotoe then decided to liquidate the company.

Absolute Traffic Solutions has been liquidated owing Inland Revenue more than $1 million. Photo / Facebook

It owes $1.58m to preferential creditors who are staff and IRD.

Assets include vehicles, traffic equipment and signage and plant and equipment.

“We intend to sell these assets with the consent of the secured creditors,” Noyce said.

Selling the company could mitigate losses.

UDC Finance, Canon New Zealand, Kiwibank and Scottish Pacific Business Finance are listed as creditors with personal security registration.

Kiwibank is owed $584,795 while the Fonotoe Family Trust is owed $1.068m.

The company is estimated to have a total deficit of $2.885m.

Waste Management NZ, Stantec New Zealand, OfficeMax, My Cloud Solutions, Kennards Hire New Zealand, Day Night Traffic, Goudie Holdings, Fortus Safety NZ, J.J Richards & Sons, EC Credit Control (NZ) and Canon are all listed towards the end of the report as creditors.

No money is likely for unsecured creditors, the report said.

Absolute Traffic Solutions said it had been running for more than 17 years and had experience in the sector, with scale and skill levels.

It was 100% New Zealand-owned and specialised in working with local roading authorities and construction companies.

Worksite protection, equipment hire and emergency response are some of its roles, it said.

It listed Auckland Airport’s international terminal, the new SkyCity NZ International Convention Centre, Precinct Properties’ Commercial Bay, Shundi Customs’ Seascape 56-level apartment tower near the waterfront, Westfield Newmarket and The Pacifica Tower near Britomart as some of the projects it has worked on.

“We made a difference to these projects, keeping the worksite and public safe with our internationally recognised health and safety standard traffic management solutions,” the company said.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.