Receiver Stephen Tubbs, of BDO Christchurch, has declined to make any further comment on Steve Rout Contracting (SRC) Ltd's voluntary receivership yesterday, saying the matter was receivership of a private company.
The Frankton-based company owes $11,011,217 to creditors, of which $2,130,138 is to unsecured trade creditors. However, some people question how Mr Rout continues to operate under his Blue 9 company.
SRC was placed in receivership on May 3 following a default and at the request of director Steve Rout, owing secured creditors $7,919,161, of which $7,285,320 is owed to finance company UDC.
Other secured creditors are BNZ, John Deere Credit, Toyota Finance New Zealand, Marac Finance, Porter Hire and Traffic Signs New Zealand.
The woes stemmed primarily from losing a contract on the $2 billion Five Mile project, which was abandoned in 2008. Mr Rout was also forced to write off about $1 million in debt during the global economic meltdown.
SRC had been involved in the construction of Dunedin's Forsyth Barr Stadium. That work was continuing under Blue 9.
The Otago Daily Times yesterday reported receivers were able to conclude a sale for the business and a part of the company's fleet to Blue 9 Ltd at market value.
The ODT asked Mr Tubbs of BDO several questions yesterday, including whether assets or income from Blue 9 would be realised to pay SRC creditors.
"It is not our firm's policy, and in fact would in my view be a breach of the NZ Institute of Accountants code of ethics, to comment in the public domain on the private business affairs of assignments we undertake ...," Mr Tubbs said in an email.
Blue 9 was established in February 2005 with Steve and Jane Rout directors, each with 50% shareholding.
In March 2010, McCulloch Trustees 2004 was also listed as a shareholder. Its directors were Mark Bain, Donald Bennett, Stephen Brown, Ross Jackson, Gregory Munro, Murray Rankin, all of Invercargill, Donald Jackson, of Queenstown, and Grant McCulloch, of Arrowtown.
On March 31 this year, Mrs Rout ceased directorship and on April 7 all three shareholdings were vacated. The sole shareholder became McCulloch Trustees 2010, with the same directors as McCulloch Trustees 2004.
In May, the ODT reported creditors alleged assets were shifted from SRC into Blue 9 just before SRC was placed in receivership, owing them several hundred thousand dollars.
Mr Rout could not be reached for comment yesterday.
