An application has been made to the Dunedin High Court by Fletcher Steel to have the company placed in liquidation.
Under receivership, the company could potentially be sold as a going concern, but if the liquidation application is successful, it could be wound up and its assets sold to repay outstanding debt. The hearing is next week, when Fletcher’s statement of claim will be heard.
While D.C. Ross has debts and liabilities amounting to $18.97 million, PwC receiver Malcolm Hollis said in his first report he had withheld and omitted any values of the company’s assets, not wanting to prejudice its potential sale.
D.C. Ross was placed in voluntary receivership by 72.5% shareholder Aorangi Laboratories Ltd on September 14, largely because of the downturn in the Australian car manufacturing sector, which interrupted cash flow.
D.C. Ross supplies high precision fine blanking tools and fine blanked components, with up to 40% of its work done for giant Chinese whitewear manufacturer Haier, which owns Fisher & Paykel Appliances. Another about 50% was for the automotive industry.
There are 12 staff at the Kaikorai Valley plant of the 50-year-old company.
