iData Resolutions, which crashed into liquidation last month, has debts of more than $2 million for the New Zealand operation according to the liquidator's first report.
As reported in The Channel yesterday, a Hamilton insolvency practitioner, Dennis Parsons of InDepth Forensic, was appointed liquidator of the company on January 21, following a special resolution of the shareholders.
Parson's first report shows debts of $2,362,010 and assets of plant and equipment, accounts receivable, cash in the bank and office furniture and fittings of just $356,914, leaving an estimated deficit of $2,005,096.
An estimated $2.1 million of the debt is to unsecured creditors. Twenty preferential creditors are owed an estimated $301,893.
The first report notes that, according to the director of iData, the company got into trouble in May 2014 and was unable to satisfy its main creditor, EMC.
"We entered into a payment schedule with EMC and maintained this.
"In November 2014, EMC placed the company on stop ship. We were current with the payment schedule.
The report says despite negotiations which 'appeared to be making progress, we were advised on January 16, that EMC would not negotiate a solution'.
Parson's notes the director's explanation doesn't address the background to the difficulties arising in May 2014.
The company, which had offices in Auckland and Wellington, as well as a wholly owned Australian subsidiary – also now in liquidation – was a specialist backup and recovery provider.
Unsecured creditors have until 20 February to file a claim form with the liquidators.
No completion date has been given for the liquidation. The liquidator's six monthly report is due in August.
In Australia, where the company established a wholly owned subsidiary, iData Resolutions Pty in 2009, the company reportedly owes more than AU$478,000, with $280,000 owed to EMC.
The Australian business was placed into liquidation on 22 January. Both liquidations are being administered separately.
