A statutory demand can be requested from a creditor to a debtor, demanding payment for an unpaid debt, with that debt being due within 15 working days.
“The director undertook advice to determine the company’s solvency and ability to trade out,” the liquidator said.
“After a sober assessment of the financial position of the company, the director elected to recommend to the shareholders that the company be put into liquidation.”
Adrian Collins is the sole director of the company, according to Companies Office records.
Adrian and Nicola-Jane Collins are both 50% shareholders.
Secured creditors, including ANZ, Oxford Finance and Graincorp Feeds, are owed $189,996.
Preferential creditors and unsecured creditors are owed $117,897 and $291,141 respectively.
Creditors include ACC, Inland Revenue, Spark NZ, Waste Management, New Plymouth District Council, Energy Vets Taranaki and FMG.
According to the statement of affairs, the company has assets including dairy herd livestock, valued at $247,992.
The company is also owed $314,046 under “accounts receivable”. This includes a $37,000 milk payment still to be received from Fonterra, along with a further receivable due from shareholders for an overdrawn shareholders’ current account.
The company also holds shares in Fonterra, with the liquidator to take steps to realise the value of those shares.
Plant and equipment has been valued at about $57,857.
The liquidator said creditor claims were yet to be determined in full, but expected those with security interests and other preferential creditors to be paid in full from the realisation of the company’s assets.
It’s unknown if unsecured creditors will be paid.
Many dairy farmers have been operating on tight margins lately as higher costs erode farmers’ financial positions.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
