A director's major health issue and debt of more than $150,000 to Inland Revenue has landed a Dunedin cleaning company in liquidation.
Last week, Teague’s Commercial and Domestic Services Ltd, which operated as a commercial and domestic cleaning service in Dunedin for about six years, was placed into liquidation by shareholders Kyle and Lisa Teague.
Trevor and Emma Laing, of Trevor Laing and Associates, were appointed joint liquidators and in their first report said due to the level of preferential debt and the assets available it was not expected unsecured creditors would receive their money.
It was estimated the company owed $156,000 to Inland Revenue Department.
Its debt to secured and unsecured creditors, as well as employee claims, was yet to be established. Secured creditors were the IRD and the company’s employees.
Unsecured creditors included ACC and a Dunedin online marketing company.
The company’s total assets were also yet to be established.
However, the report said record obtained disclosed its assets consisted of vehicles, cleaning equipment, intellectual property, client contracts and accounts receivable.
The report said at the date of liquidation, a sale of the business had been informally negotiated and the liquidators would continue to negotiate with the potential buyer to attempt to reach an agreement.
They would continue to trade the business to give time for the sale to be completed.
A further report on the liquidation would be prepared within the next six months.
