Liquidators say 32 unsecured creditors of Glenorchy Lodge Ltd will probably be completely out of pocket.
The lodge’s former owners and directors, Elizabeth Fox and Michael Mellon, put their company into liquidation on August 1 after selling the business, stock and plant on June 10.
In their first report, liquidators Iain Nellies and Gus Jenkins of Dunedin say $46,579 remaining was transferred to them.
Not so good, however, is the pecking order of creditors.
A single unnamed secured creditor and four preferential creditors, also unnamed, have prior claims on the $46,579 – followed by 32 unsecured creditors owed $89,000.
“It seems unlikely there will be funds for a dividend to unsecured creditors,” the liquidators say.
“Secured creditors and all preferential creditors such as employee claims, certain Inland Revenue claims and hire purchase contracts must be paid before unsecured creditors,” they add.
Fourteen local firms are among the 32 unsecured creditors.
Former owners Fox and Mellon formed their company in 2007.
The business, renamed The Lodge Glenorchy, is now owned and managed by brothers Phil and Graham Dunstan.