A Southland shearing services company is in liquidation.
Liquidators of a Southland shearing company claim to have identified a breach of director duties, insolvent transactions and overdrawn shareholders’ account claims.
X Factor Shearing was put into liquidation in July 2021.
The company was registered in Gore and then Invercargill prior to liquidation. Directors Hugh and Marion Kidd are listed in Riversdale.
The most recent liquidators report, released August 2, says creditors are owed $ 612,863.
However, $ 1,071,484 in loan accounts to related parties are assets on the company’s books, according to the liquidators report.
Liquidators have demanded repayment of these loan accounts.
“Although these claims were refuted, we are yet to receive any supporting evidence. We have instructed our solicitors to pursue these claims, ”the liquidators say.
The Kidds’ solicitor has been in prolonged correspondence with the liquidators, it says in the report.
The Kidds’ son manages the company’s affairs, the liquidators say in the report. The son was identified in a previous report as Roger Kidd.
“Other than a brief conversation with one of the directors on the date of liquidation, they were unresponsive to our correspondence,” the KPMG liquidators say in the August 2022 report.
There had also been a brief conversation with the son, but he was uncontactable since, the liquidators say.
“We identified a breach of director duties, insolvent transactions and overdrawn shareholders’ current account claims against the Company’s directors / shareholders and issued demand in respect of this.”
X Factor Shearing owes $ 306,347 to IRD, $ 250,445 to unsecured creditors, $ 49,104 to preferential employee creditors and $ 6966 to a petitioning creditor, liquidators say.