A southern-based firewood business has blamed shortage of wood, staffing difficulties, theft of cut wood and Covid-19 for its insolvency position.
KD Firewood, which originated in Invercargill and later took over Wanaka Firewood, was put into liquidation by a special resolution of shareholders earlier this month.
The company, which was incorporated in October 2019 and ceased trading at the end of last year, was jointly owned by Kerry John Dixon and Owen Fredrick Dixon who were also its directors.
In his first report, liquidator Iain Nellies of Insolvency Management Ltd said the total amount owed to creditors was just over $855,000 — which included unsecured creditors of $126,556.
With total net assets of $659,350, that left the total estimated deficit, subject to costs of liquidation, at just over $296,000.
It was not possible to determine whether a dividend would become payable to creditors until all the records had been examined.
Owen Dixon was also listed as the director and shareholder of Dixon Transport which was placed in liquidation in September last year for failing to meet its obligations to Inland Revenue.
In their first report in October last year, KPMG liquidators Elizabeth Keene and Luke Norman said the company was incorporated in 1994 and operated as a transport business, predominantly for the logging industry.
The director, who said the company had ceased trading in 2023, initially advised he wanted to repay all creditors and terminate the liquidation.
However, the liquidators were told that was no longer financially viable.
Total liabilities were estimated at more than $2.3 million.
Meanwhile Kristal Pihama and Luke Norman, of KPMG, were appointed liquidators of Dixon Haulage Ltd earlier this month, the appointment made on the application of the Commission of Inland Revenue.
Owen Dixon was also listed as director and shareholder of that company. — APL
