An international company is negotiating with the receivers of Dunedin engineering company DC Ross over a potential purchase.
While there were no indicative offers of interest to buy DC Ross during its recent sales process, PWC receiver Malcolm Hollis said an unidentified potential buyer had since come forward.
''We're in the final stages of negotiation. It's not yet signed up, but very close,'' Mr Hollis said yesterday.
DC Ross was placed in receivership by its majority shareholder, the McConnon family, of Dunedin, in mid-September, with debts totalling almost $19million; of which the family trust is owed $13.77million.
The BNZ is owed $4.3million and Fletcher Steel $609,000.
Mr Hollis could only confirm the negotiations were expected to be concluded by the end of the month.
In his recent six-monthly report, Mr Hollis said PWC had received no indicative offers for the business operations, nor for the assets of DC Ross.
The company's 12 staff had stayed on, and are entitled to a maximum preferential claim of $22,160 each, but have other unsecured claims lodged with the receivers.
''A site visit was undertaken by the potential purchaser to understand the business operations and assess the condition of the company's assets available for sale,'' he said in the report, lodged in late-May.
About 50% of DC Ross' work was for the automotive industry and up to 40% was for giant Chinese whiteware manufacturer Haier, which owns Fisher & Paykel Appliances.
The receivers said last November the downturn in the Australian car manufacturing sector had created cash-flow problems for DC Ross.
DC Ross is also subject to separate liquidation proceedings, over a $600,000 debt, but the liquidators will make their claim only once receivership is completed, if any assets or surplus funds remain.
