THE liquidator of the New Zealand business operating on behalf of Tempo Holidays Pty Limited has released his first report, citing evidence of “large related party advances (loans) as an asset of the company”.
Insolvency practitioner Chris Horton from Chris Horton Associates was appointed Liquidator of Tempo Holidays NZ Limited on 24 Sep, a few days after the closure of the business in Australia (TD 20 Sep).
Horton’s preliminary report noted that Tempo Holidays NZ operated as the New Zealand sales agent for Tempo Holidays and Bentours, with the businesses having the same ultimate holding company, Cox & Kings in India.
He said Tempo Holidays was “under cashflow pressure, and for some weeks had been seeking investors/buyers”.
However this was unsuccessful, leading to the company being placed into administration.
In New Zealand Horton says he’s been advised that all staff except the NZ manager had been paid out their entitlements, and had their employment terminated when the business closed.
The report only notes one secured creditor in NZ, in relation to the finance of a printer/photocopier, while NZ unsecured creditors at this stage include utility and communications suppliers as well as the New Zealand Inland Revenue Dept.
“All known creditors have been contacted by the liquidator to advise of the liquidation and to submit claims for debts due,” the report notes, adding that no NZ meeting of creditors is planned “following a review by the liquidator of the known assets and liabilities of the Company”.
Fixed assets include desks, chairs and computer screens, which the liquidator is attempting to sell, while the NZ business had about NZ$330,000 in cash at the time it ceased trading.
In terms of the related party loans “the liquidator will investigate and pursue where economic to do so”.
William Buck, the administrators of Tempo Holidays Pty Limited in Australia, has today convened its first meeting of creditors in Melbourne, which should see some estimate of the scale of the collapse revealed.
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Source: traveldaily