‘Fruitless’: Liquidation of Fairlie building company complete

Saturday, 24 May 2025

The liquidation of one of two linked building companies in Fairlie has been wrapped up, with the liquidators saying it would be “fruitless” to chase funds from the bankrupt shareholder.

KJMB 2022 Ltd, owned by Kerry McIvor, was put into liquidation in April 2024 along with an associated company, K J McIvor Building Ltd.

McIvor was the sole director and shareholder of KJMB 2022 Ltd and sole director and 95% shareholder of K J McIvor Building Ltd. The other 5% was owned by Megan McIvor.

Combined, the companies had estimated debts of $2.4 million.

KJMB 2022 Ltd owed $523,361, mostly to Inland Revenue. The tax department applied to have the company liquidated for failing to meet its tax obligations.

Kristal Pihama, of KPMG Auckland, was appointed joint liquidator with Luke Norman in February because of a vacancy. The pair released their final report for the liquidation of that company on May 16.

In it, they said the company director had been spoken to so they could “gain an understanding of the company and its interrelation with the associated company”.

“The company (KJMB 2022 Ltd) had been incorporated with the intention of moving the business from the associated company (K J McIvor Building Ltd) to the company; the two never traded concurrently.”

They said McIvor had attempted to reduce overheads and increase revenue when he realised KJMB 2022 Ltd was facing difficulty.

“The director advised that the company ceased trading approximately six months prior to liquidation, all employment contracts were terminated and the director was working elsewhere for salary and wages.”

The liquidators said the company’s “tangible assets remained in the associated company” and no assets had been identified for realisation.

“The director advised that all outstanding accounts receivable were collected prior to liquidation and there was no further work to invoice.”

A review of records had found a negligible amount of outstanding accounts, but as no debtor details had been recorded they were considered “uneconomical to pursue”.

The liquidators had also identified an overdrawn shareholder’s current account and issued a claim against the shareholder.

However, he had been declared bankrupt in September.

“A claim was filed in the shareholder’s bankruptcy. The Official Assignee has not identified any assets available for the benefit of the bankrupt’s creditors and the administration of the bankruptcy is now complete.

“The liquidators consider that any potential claims against the director would be fruitless and have therefore decided to complete the liquidation.”

Meanwhile, steps are now being taken to complete the liquidation of K J McIvor Building Ltd.

The third liquidators’ report, which covers the period from October 16 until April 15, was also released last week.

That company had estimated debts of more than $1.9m. Of that sum, just over $1m was owed to secured creditors, $500,000 was owed to preferential creditors, and $345,000 was owed to unsecured or informal creditors.

The latest report outlined the activities of the liquidators to date and said a property at Fairlie, owned by the company but secured by way of mortgage, had been sold at auction with $673,913 recovered.

A shareholders’ current account of more than $280,000 was yet to be recovered.

Plant and equipment owned by the company was deemed to be of nominal value and had been disposed of, and the company’s vehicles had been sold prior to liquidation.

“The liquidators are obligated to evaluate the actions of management, review antecedent transactions and, if necessary, report any adverse findings to the appropriate authorities.”

They asked for any creditors with information that may assist them to provide it in writing with evidence.

An estimated date for the completion of the liquidation could not be given, the report said.