DC Ross was placed in receivership in September last year by its majority shareholders, because of cash-flow problems, with debt totalling almost $19million; largely held by the McConnon family trust's Aorangi Laboratories Ltd, whose 75.2% stake is owed $13.7million of the total $19million.
Separate liquidation proceedings were initiated by steel supplier Fletcher Steel in February, over a more than $600,000 debt, and were not defended in court.
The receivers' work takes precedence over that of the liquidators, who will only be able to make a claim if there are any assets or or surplus funds remaining once the receivers finish up.
While PwC are the receivers, KPMG are the liquidators and last month lodged the liquidators' first report, with the Companies Office.
KPMG liquidator Vivian Fatupaito said in her report receivers PwC were attending to the potential sale of DC Ross; and the company's assets were in the control of PwC.
''It is too early to determine what value will be realised from the sale or disposal of the assets and whether there will be sufficient funds available to pay the secured creditors in full,'' Ms Fatupaito said.
She said ''for the foreseeable future'', KPMG would continue with trading of the business operations, pending a prospective sale ''as a going concern'', or should circumstances warrant it, the breakup of the company assets.
She outlined how DC Ross provided engineering services to international clients; high-precision fine blanking tools and fine-blanked components, but the downturn in the Australian car manufacturing market resulted in poor cash flow.
While the debt stood at about $19million, neither reports by PwC or KPMG have given any indication of the value of DC Ross' assets, which would offset the extent of the debt.
In November, PwC said from what it had found out at that point and given the substantial amount owed to secured creditors, PwC believed it was unlikely there would be any funds available for unsecured creditors.
Aside from the $13.7million owed to Aorangi Laboratories, the mid-November PwC report said secured creditors included the BNZ, owed $4.3million, Fletcher Steel, $609,000, 12 employees as preferential creditors were owed $209,0000 and Inland Revenue was also a preferential creditor, owed $78,000.
