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  1. #1

    Default Claims on liquidation

    I am an unsecured creditor of a NZ company but I am not living in NZ. Now this company is on liquidation, I don't know what should I do for my claim and appreciate for any advice on the following questions:

    1. a public notice on NZ Herald said creditors should prove their debts before a deadline. How can I do this prove of debt procedures ?

    2. another public notice said there will be a creditors' meeting. I cannot join because I am not living in NZ. So will it affect my claim if I cannot attend this meeting ?

    3. After doing the prove fo debt, anything else I need to do ? What will be the subsequent process ?

    Many thanks.

  2. #2
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    3,019

    Default

    You submit an invoice for your debt to the Liquidators.
    'Proof' means supporting documentation to show that the company in liquidation asked for the product or service you supplied - can be a purchase order, an email request or some such document.

    The creditors meeting is usually a legal formality. It is run by the Liquidators, and they will present a situation statement listing the assets and liabilities of the company.
    You can normally get a copy of this report either from the liquidators website or directly from the Liquidators.
    Not attending the meeting will have no effect on your claim.

    The subsequent process is usually:
    - the Liquidators go all out to ensure that any priority debt to a bank is paid in full. This makes the bank very happy, and hopefully improves the Liquidators chances of getting the next job that comes along.
    - the Liquidators then jack up their own fees as high as they think that they can get away with.
    - if any money is still left, then priority creditors (wages, IRD, secured creditors) get the next tranche.
    - in the highly unlikely event that there is any money still left, unsecured creditors get a part payout (so many cents in the dollar). Pigs also fly.

    If you are an unsecured creditor there is virtually nothing you can do to affect the process.
    You are just a widget in the machine.

    Assuming that you are an unsecured creditor you are right at the bottom of anyone else's priority list, and it is extremely unlikely you will ever get anything more than a form letter telling you that there will be no payment of your debt.

    Right now your job is to get used to the fact that your money has gone. If miracles do happen, then treat that as an early Christmas.

  3. #3
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,594

    Default

    Quote Originally Posted by jc013 View Post
    I am an unsecured creditor of a NZ company but I am not living in NZ. Now this company is on liquidation, I don't know what should I do for my claim and appreciate for any advice on the following questions:

    1. a public notice on NZ Herald said creditors should prove their debts before a deadline. How can I do this prove of debt procedures ?

    2. another public notice said there will be a creditors' meeting. I cannot join because I am not living in NZ. So will it affect my claim if I cannot attend this meeting ?

    3. After doing the prove fo debt, anything else I need to do ? What will be the subsequent process ?

    Many thanks.
    How much money are you talking about? Was it a loan or for Goods/services?

    Is it a voluntary liquidation with the owners appointing the liquidator, or has IRD or another creditor appointed the liquidator?

    If you are owed a bit, and the liquidator has been appointed by the owners (friendly liquidator), then you need to attend the creditors meeting in some capacity and I would suggest trying to pass a resolution that the liquidator is changed. A friendly liquidator will act for the owner, and can be really biased so that you get nothing as a creditor, but the owner buys all the assets at 1/10th of there value etc.

    Email or talk to the liquidator about the creditors meeting and how you vote. Generally liquidators try to avoid this meeting, so if a friendly liquidator object to not having a creditors meeting, to ensure you get your say (should be able to do by skype or through proxy)

    PM me or email me [email protected] if you want some help

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  4. #4

    Default

    Thanks very much for all your information.


 

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