Waimate plant propagation business in liquidation

Wednesday, 7 August 2024

The director of a Waimate plant propagation, engineering and freight service business, now in liquidation, says he hopes to pay back those owed money.

Headford Propagators Ltd, whose shareholders are listed as Robynne and Donald Hayman, and Flyn Mitchell, was placed into liquidation on July 29, with the first liquidator’s report filed to the companies office on Monday.

Donald Hayman, known as Grant, also listed as the company director, said the business, based in Morven, would do “everything” it could to realise what it owed creditors.

“Other than that, I’m not in a position to comment,’’ he said.

In their report, joint liquidators Trevor Laing and Emma Laing, of Otago-based Laing Insolvency Solutions, said the reasons given for the liquidation included a significant reduction in turnover, estimated to be more than $400,000 in the past two months, due to reduced plant sales, and the loss of regional and local authority sales.

Transport rate competition, and significant increases in costs, including interest rates, wages, rates, insurance and general supplies and services were also cited as contributing factors.

It was not practical to estimate, at this stage, when the liquidation would be complete, the report said.

It said the company, established on July 26, 2002, operated a nursery involved in large scale propagation of plants from seeds and cuttings for the wholesale market, and provided a freight service to deliver plants, trees and general freight as well as providing engineering services.

“The director has advised that there has been a significant reduction in turnover in recent times that has affected the viability of the company.’

It appeared to the liquidators that the director and shareholders had sought “the appropriate professional advice and as a result taken proactive action which has to some extent limited the effects of the company’s financial situation’’.

The amount owed to all creditors was still to be established, and it was too early in the liquidation process to predict the likelihood of a dividend becoming available to unsecured creditors.

“The value of saleable stock is being determined and the amount of equity in the various plant and equipment items, if any, will take time to establish.’’

Creditors who wished to file a claim had until August 30 to do so, and those wishing to make a title claim of assets must by August 9, it said.

Company assets consisted of a number of commercial freight vehicles including large truck and trailer units, specialised machinery and equipment used in the engineering workshop and in the nursery operation. There was also a significant amount of plant inventory at varying stages of growth, the report said.

The Inland Revenue Department and employees are the preferential creditors.

The liquidators were aware that employees had outstanding wages and holiday pay. The exact amount was being confirmed, the report said.

There were 28 employees and “therefore it is expected that this preferential amount will be significant”.

Unsecured creditors, of which 93 were listed, included Ashburton Contracting Ltd, Blue Mountain Nurseries, Dowells Office Supplies Ltd, G and R Hayman Family Trust, several hotels and motels, Vulcan Steel and Rockeater Truck Services Ltd.

Under secured creditors, the report said there were 24 registrations recorded on the personal property and securities register.

They include Heartland Bank Ltd, PGG Wrightson, Fern Energy LTD and Scottish Pacific Business Finance Ltd.

The next report is expected in six months.

The liquidation follows other recent company liquidations in South Canterbury.

In May, a recruitment company whose owner was celebrated as an emerging leader by South Canterbury’s business community was put into liquidation owing more than $1.5 million to Inland Revenue.

Trinity Employment Services Ltd, which operated as an employment placement business since 2021, had offices in Timaru and Rolleston.

It was placed into liquidation in the High Court at Christchurch at the request of the tax department.

In March, Timaru employment agency Staff Services Ltd was placed into liquidation.

Earlier in the month, Waipopo Limited Partnership, the owner of South Canterbury’s Waipopo Orchards, went into receivership owing millions of dollars to a bank, and Timaru-based building company New Zealand Carpentry Ltd was placed into liquidation.

In May, finance and credit expert Keith McLaughlin told The Timaru Herald it would be a difficult winter for many in business in South Canterbury, as interest rates continued to rise, consumer spending weakened, and the number of jobs being advertised remained well down.