An order was made in the High Court at Dunedin in March, 2023, to place Burns Group 2018 Ltd — of which beleaguered businessman Malcolm Burns is the sole director — into liquidation, on the application of Inland Revenue. The company’s shares are split between Mr Burns and Leonard Cheng.
It operated as a holding company with passive investment of three subsidiary companies: Titan Bulk Haulage — which is in liquidation — Otago Excavation — which is in receivership and liquidation — and Forest Distribution and Logistics. Mr Burns is the sole director of those three companies.
In their fifth report to creditors and shareholders, liquidators Luke Norman and Kristal Pihama, of KPMG, said they had entered into an agreement for the sale and purchase of the company’s shares in Forest Distribution and Logistics, which is described on the Companies Office website as an export documentation preparation service.
The purchaser defaulted on the agreed terms and, while the liquidators have had prolonged communication with the purchaser, no funds had been received.
In the statement of company affairs included in the liquidators’ report, breach of directors' duties, with an estimated value of more than $3.1 million, was listed. Other assets were still to be determined, while total liabilities sat at just over $2 million.
— APL
