Liquidator's report shows Ebert owes creditors $119.4 million
Friday, 5 April 2019
When construction company Ebert called in the receivers last July, it owed around $24.5 million, but the latest liquidators report has revealed this number has jumped to almost $120m.
The failed construction company owes 336 unsecured creditors, including many subcontractors who Ebert hired to do work on its projects, $108m. But including secured and preferential creditors, BNZ and Inland Revenue, Ebert owes about $119.4m.
BDO liquidators Iain Shephard and Jessica Kellow said they understood that there was the potential for at least a further $10.86m of additional unsecured claims that might be filed in the liquidation.
'The liquidators are aware that this amount is considerably higher than the accounts payable balance previously reported - $24.52m as at 31 July 2018,' the report said.
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Ebert Construction, one of the country's larger construction companies, collapsed in August last year after 19 years in business.
The collapse came as a shock to sub-contractors. Its projected turnover for 2019 was $171m.
On August 1, construction sites were locked, sub-contractors were scrambling to get their equipment back and bewildered staff stood outside their offices.
Ebert's founders were Denis Ebert, who had resigned from the board four years ago, and Kelvin Hale, its Wellington-based managing director and director.
Records later revealed that Ebert and Hale retained control of a string of companies with millions of dollars tied up in assets, and whose shareholders commonly included Beatrice Ebert and Bronwyn Hale.
Ebert's liquidation was originally placed in the hands of Grant Thornton but creditors overturned its appointment in favour of another liquidator, BDO, in November.
More than 100 staff lost their jobs. Their outstanding pay, holiday pay, and KiwiSaver contributions were paid at the end of October, the receivers said, $270,027 in all.
In the period from July 31 to January 30, receivers collected $4.47m in payments, including from the sale of Ebert assets, and made $2.8m in payments, including paying their own fees of $848,549. Up until that date $295,651 had been paid in legal fees.