Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Hydroworks creditors face $12.6 mln shortfall

Hydroworks creditors face $12.6 mln shortfall, liquidators say

By Paul McBeth

Nov. 10 (BusinessDesk) - Unpaid creditors of Hydroworks face a $12.6 million shortfall with the liquidators of the failed hydroelectric turbine maker finding the firm had little in the way of its own intellectual property.

Interim liquidators were appointed to the Christchurch-based company in August by cornerstone shareholder Powerhouse Ventures after the board walked out. Liquidators David Webb and David Vance of Deloitte were later appointed in October and since then have been assessing the value of the business as they look to start selling assets.

"We were informed that all employees were told not to turn up to work by company management after learning of our appointment as interim liquidators the day before," the liquidators said in their first report. "Without sufficient working capital funding and facing staffing difficulties, we were left with no option but to cease trading immediately and terminated the employment of all staff."

While the liquidators went through the remaining assets to see what value was left in the business, they found Hydroworks held intellectual property belonging to its customers, which the liquidators located, extracted and returned.

"During this information review process, it also became apparent to the liquidators that the company in its own right owned very limited intellectual property available to be realised during the liquidation," Webb and Vance said.

The liquidators didn't disclose the value of any property plant or equipment, but noted the majority of assets were leased by the firm. With $381,000 owed to preferential creditors, $5.1 million to secured creditors, and another $7.6 million to unsecured creditors, the liquidators estimated a shortfall of $12.6 million.

ASX-listed Powerhouse owned 24 percent of the hydroelectric turbine designer and had been weighing up options to restore administration control to Hydroworks before seeking a court order to install interim liquidators. The company's shares last traded at 35 Australian cents, having more than halved so far this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>


High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>


Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>


Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>


Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>


Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>