‘Very disappointing’: Unpaid projects send 40-year-old company to the wall

Friday, 6 December 2024

Siebers International has been in business in Timaru for more than 40 years.

The owners of a long-running Timaru company have put it in the hands of liquidators in the hope they will pick up the fight over the continual non-payment for two significant projects.

Siebers International, which was incorporated in May 1984, has been providing electrical, refrigeration and heat pump services to South Canterbury for more than 40 years.

Owner Peter Siebers said he and his terminally-ill wife, Josie, had made the decision to voluntarily liquidate their business over two “very large” projects they had not been paid for.

“Unfortunately, we have ended up in two very large contractual disputes with larger contract companies who have disputed their obligation to pay us.

“While this is very disappointing, we need to focus on Josie’s deteriorating health.

“We are hopeful the liquidators will pick up the fight in the liquidation of the company.”

Peter Siebers said it was disappointing to have to liquidate after 40 successful years in business, but they needed to focus on the health of his wife Josie. (File photo)

He did not name the companies, and directed any further questions relating to the matter to the liquidators. They have been approached for comment.

Siebers said they were proud to have serviced many happy clients throughout South Canterbury and beyond through their business.

“We would like to thank the many wonderful clients and suppliers we have worked with over the years.”

Siebers International Ltd was placed into liquidation on November 15 owing more than $400,000, with liquidators Trevor Laing and Emma Laing, of Dunedin-based Laing Insolvency Specialists, appointed to oversee the process.

In their first report, released on November 25, the reason given for the liquidation is listed as “two large projects that there is an issue collecting final payment for”.

“This was a well-established company, having traded for 40 years.

“The company recently completed two large projects in the Timaru area for which it was sub-contracted for. There have been ongoing issues collecting the final payments for these contracts.

The outstanding amounts owed to the company for the two projects have been described by the liquidators as “substantial”.

“The amounts involved are substantial for the company and the continual non-payment for these contracts has resulted in the decision by the shareholders/directors to put the company into liquidation,” the liquidators’ report says.

According to the report, which liquidators note contains early estimates, the company owes just over $400,000 and has known assets of $24,715 plus the yet to be established final payments on contracts for the two large projects which it lists as being “disputed”.

Inland Revenue is owed an estimated $94,822, the company owes $22,976 in holiday pay, and unsecured creditors are owed $284,895.

There are 12 known secured creditors, one preferential creditor and five former employees owed holiday pay, plus 54 unsecured creditors.

“It is too early in the liquidation process to estimate if there will be a dividend available to creditors.”

Centrix managing director Keith McLaughlin says the impact of liquidations is greater on rural communities, where the economy is smaller and it was more noticeable.

The creditors include a number of South Canterbury-based companies.

The liquidators said they would now arrange for the sale of company assets, seek a resolution for payment of the two large projects, investigate transactions, and confirm all creditor claims.

Creditors have until December 20 to lodge claims and anyone with information they think may assist the liquidator is asked to get in touch with them during normal business hours.

The liquidation is just one in an increasing number. This week Centrix released its November Credit Indicator, which showed liquidations were up 27% year-on-year across the country.

Centrix managing director, Keith McLaughlin, said the figures collected by the company show 268 companies were liquidated in the Canterbury region in the 12 months to October 31, up from 230 the year prior.

A breakdown of those by industry showed 32% were in the construction sector, 11% in hospitality, 9% in property, with retail and manufacturing accounting for 7% each.

McLaughlin said the impact of liquidations was greater on rural communities, such as South Canterbury, where the economy was smaller and it was more noticeable.

“It’s always the small businesses that get caught out being at the end of the food chain.’’

McLaughlin also warned liquidations were expected to increase “for the next three to six months, at least”.