Dave Thomson's company, Middlemarch Tourism Ltd, which organised Otago Central Rail Trail tours and was a booking agent for accommodation providers and others along the trail, was placed in liquidation on August 9 owing at least $967,000.
Of that, $67,345 is owed to 47 unsecured creditors, including 24 accommodation providers, the Otago Central Rail Trail Trust, and Taieri Gorge Railway.
Some unsecured creditors feared Mr Thomson was continuing to operate a similar business, Rail Trail Services Ltd, of which he is the sole director. When searching online, that company name links to a rail trail information website and booking service operated by his partner, Philippa Wilkie.
A search of Companies Office records shows Mr Thomson is a sole director or co-director of seven companies. Two were placed in liquidation on August 9: Middlemarch Tourism Ltd and Cycle Surgery Franchises Ltd.
Companies not in liquidation are Cycle Surgery Middlemarch, Adventure Tourism No 2, CGDD Group, E Tours CS, and Rail Trail Services.
In an email to creditors on August 9, Mr Thomson said he had sold Cycle Surgery Middlemarch and Rail Trail Shuttles (which is not a registered company) some months ago to Ms Wilkie and cleared some debts.
He said he would continue to work for her as an employee.
Creditors were concerned about the extent of Mr Thomson's involvement in the companies, Graeme Duncan, whose family-owned business Wedderburn Lodge and Cottages is owed $4000, said on Tuesday.
"When the Rail Trail Services website is still trading, it does raise questions. Our concern is that Mr Thomson may have drained the income-earning parts from the companies which have been liquidated and put them [elsewhere]."
Liquidator Ian Nellies, of Insolvency Management Ltd, said on Tuesday he was aware of the creditors' concerns.
Mr Thomson's business affairs were "intertwined" and his staff were "unwinding them to see what is what", he said.
Decisions made by directors before a liquidation such as the sale of companies or assets had to stand scrutiny as to price and where the sale proceeds had gone, Mr Nellies said.
"Directors are entitled to do whatever they think is best for a company, but if actions put some creditors at risk, that is something for liquidators to look at."
The liquidators' first report for Middlemarch Tourism Ltd shows the company owes $900,000 to secured creditors ANZ National Bank, Southland Building Society and South Canterbury Finance. It also has a debt to Inland Revenue which has not yet been determined. The extent of its assets has also not yet been determined.
The liquidators' report for Cycle Surgery Franchises says the company has three secured creditors, one unsecured creditor and no known assets.
The total owed had not yet been determined. Contacted by the ODT on Tuesday, Mr Thomson said he "was not trading and not operating anything". Rail Trail Services Ltd was a non-trading company, he said.
The rail trail services name had been "parked" to prevent others from using it and the company and had no connection to the website operated by Ms Wilkie, he said.
After four years of referring customers to accommodation providers and other businesses along the trail, "and putting hundreds of thousands of dollars their way", he said it was "pretty hurtful" they would think he was deceiving them.
Mr Thomson said he was caught by several factors, including the failure of Cycle Surgery Dunedin in June, which resulted in non-payment of franchise fees, a downturn in tourism, and South Canterbury Finance's instruction to increase mortgage payments by $9000 a month.
He had sold two houses, worked for no wages for the past seven months and sold the companies to Ms Wilkie but was still not able to clear all his debts.
"Basically, 42 years' worth of work has gone in eight months. I would not wish what I have gone through on anyone."
He had also tried unsuccessfully to sell a building he owned in Invercargill last month and planned to sell six other properties he owns or part-owns. Five are mortgagee sales and the properties have a combined rateable value of just over $2 million.
Taieri Gorge Railway might be owed as much as $13,5000, general manager Murray Bond said on Monday. The total was still being calculated but the debt would probably be written off.
"We have 4000-5000 booking agents all over the world and apart from the odd bad debt here and there, we haven't had any trouble," he said.
For sale
Thomson properties for sale
• Blind Billys Motel and Holiday Camp, Middlemarch (on two titles), rateable value $800,000.
• Tenanted shop, Middlemarch, $190,000.
• Tenanted shop, Middlemarch, $165,000.
• Vacant section, Middlemarch, $23,000.
• Bare land, 22ha, Sutton (on two titles), $123,000.
• Tourist Lodge, Waipiata, $320,000.
• Commercial building, Invercargill, $430,000.
