The company behind a massive development on Ormiston Road called in liquidators citing related party companies and their debt of $18 million and their failure.
In the first report to creditors and shareholders released recently, insolvency practitioners Reynolds & Associates DDL Homes Central Limited said the company was incorporated in October 2018.
It was a civil contracting company undertaking civil contracting work for related parties, in particular development companies DDL Homes Ormiston Limited and DDL Homes Ormiston 2020 Limited, both of which are in receivership and liquidation.
Director Baljit Kaur Dheil, whose address is recorded as Flat Bush according to the NZ Companies office, explained to the liquidators that the causes of the company becoming insolvent included the
DDL Homes Ormiston Limited and DDL Homes Ormiston 2020 Limited (the related parties) being placed in receivership and liquidation.
“The company is not able to continue to trade as a result of the failure of the related parties,” the report said.
“The related parties are indebted to the company in the amount of approximately $18,000,000 for construction work undertaken by the company and the contractors engaged by the company on the respective development sites.”
In a statement of affairs in the report, as at September 30, 2022, creditors – both preferential and unsecured non-preferential creditors – are owed $1.06m and $4.06m respectively.
There are 300 creditors in total named in the report.
The breakdown shows that preferential creditors include employee claims of $161,000 and Inland Revenue GST of $900,000.
Joint liquidators Grant Reynolds and Pritesh Patel said it is not practical at this stage to estimate the time of completion for this liquidation.
They also called for any unsecured creditors who had not yet completed the unsecured creditors claim form to file it with supporting documentation with the liquidators as soon as possible.
source : https://www.times.co.nz/news/ddl-homes-owed-18m-has-300-creditors/
25 nov,2022
