Unsecured creditors owed $550,000 by a failed Queenstown building company are unlikely to get a cent, according to the liquidator.
Award-winning D&M Builders Queenstown was put into voluntary liquidation by owner Mark Dickson last October.
Mountain Scene reported then that Dickson was controversially still building luxury homes locally through another company, Total Construction Management – of which he is a co-director with Gore-based accountant Allan Macdonald.
In his first two reports, liquidator Murray Allott reports that D&M Builders had assets worth $74,686 but owes $957,836 – including $379,110 to preferential creditors Inland Revenue and $550,398 to unsecured creditors.
There are 17 unsecured creditors, including eight from Queenstown – and Macdonald’s Gore accounting firm.
“The likely outcome of the liquidation will be no payment to the unsecured creditors,” Allott warns.
Any payment to IRD is dependent on sums raised from selling company assets and “whether there are any loans or advices owing to the company but not contemplated in this [first] report”.
Extra claims for unpaid wages and holiday pay hadn’t been verified by the time of Allott’s second report.
D&M Builders failed because of variations made to original design specifications in several recent contracts, Allott says.
“The overall cost of these variations was not properly reflected in the amount charged, resulting in the company losing profitability on the respective projects and the cumulative effect of these losses over time resulting in the company becoming insolvent.”