Unlikely returns for debtors



A debtors’ claim against a liquidated local building company’s expected to resume this week.

In their fifth report into Fowler Homes Southern Lakes (FHSL), liquidators Colin Gower and Tim Ward, of BDO Christchurch, say the claim’s been progressed before the Disputes Tribunal, but given it was adjourned to May 12, ‘‘we are not able to provide a further update in relation to this matter’’.

FHSL’s licensee and sole director John Mansfield put the company into voluntary liquidation on March 15, 2019 — it came about 24 hours after Mansfield told Mountain Scene’s sister paper, Otago Daily Times, he hadn’t liquidated and the ‘‘rumour mill’’ was ‘‘obviously in overdrive’’.

A new business, Fowler Homes Queenstown, was incorporated that July — it is not
linked to FHSL.

In their latest report, the liquidators say at the date of appointment the balance of debtors due to the company was about $849,000.

They comprise contract receivables, the recovery of which is ‘‘a complex exercise due to the nature of the construction industry’’, the report says.

‘‘We are assessing each contract on an individual basis to determine the most appropriate recovery action.

‘‘We expect the recovery from contract receivables to be significantly lower than the book value, however, we will be pursuing all recovery options available to us where we consider debts due and payable.’’

The report says investigations to date identified ‘‘a number of these debtors’’ are subject to a dispute and further litigation might be required to achieve a recovery.

‘‘However, the funds currently available to the company are insufficient to enable us to pursue these debtors in an appropriate manner.’’

As at March 14, secured creditors claims totalled $105,741 — claims have been made by Hagley Building Products, Straightline Roofing Ltd and Thwaites Aluminium Ltd.

Preferential creditors’ claims total $52,816, the bulk of that, $49,496, from Inland Revenue and the remainder from employees.

Total unsecured creditors’ claims are $2,211,237.

As of March 14, the cash on hand for FHSL was $2666.