A falling-out between shareholders has forced a Queenstown property company into liquidation owing more than $500,000 to unsecured creditors.
Remarkable Exquisite Design Ltd was placed into liquidation late last month in the High Court at Invercargill.
Insolvency practitioner Dennis Parsons, of Hamilton, was appointed liquidator.
His first report, released this week, said a "protracted dispute" between shareholders over the firm’s operations caused it to fail.
The company is owned by Waikato shareholders Geoffrey Short, Katrina Wardill and Maria Young.
The Companies Office website lists Mr Short as majority shareholder, owning 51% of the firm.
It also lists the trio as shareholders of two other Queenstown property investment companies, Takitimu Pounamu Ltd and Short Kat Mouse Ltd, which are not in liquidation.
The report said the company bought a high-end residential property in Queenstown which was rented to tourists "from time to time".
The firm’s statement of financial position estimated the house was worth nearly $2 million. Its address was not disclosed.
The company’s only secured creditor was the Bank of New Zealand, owed $1.5 million for the property’s mortgage.
About $538,000 was owed to unsecured creditors, which included the three shareholders as well as their two other investment companies, and Inland Revenue, Queenstown’s Todd & Walker Law and Nickal Holdings Ltd.
The financial statement listed an estimated deficit of about $74,800.
It was likely creditors would receive a dividend once the property was sold, the report said.
It was estimated the liquidation would be completed within the next six months.
When contacted, Ms Wardill declined to comment. Mr Short and Ms Young did not respond to requests for comment yesterday.
