Car firm in receivership, vehicles seized

Richmond company Millennium Vehicles has been placed in receivership owing millions of dollars to creditors, and its cars have been seized and put into storage.

Receiver and manager John Managh said the company went into receivership last week after failing to pay a debt to Nelson's Fairfield Finance.

About 90 cars from the company's Queen St and Gladstone Rd car yards had been removed and put into storage for protection, Managh said yesterday.

Several million dollars was owed to about 20 Nelson creditors,

Managh said, although he would not reveal the exact amount.

According to Companies Office records, the directors of Millennium Vehicles are Peri Fulton and Bruce Ewers.

Managh said they were looking to refinance.

"I encourage them in that, and while the vehicles have been locked up at this time, no employees have been dismissed or anything like that."

Two or three staff members were working for the company, he said.

If successful in finding another lender, the car yards could be up and running again immediately.

Managh said he would probably know within a week whether the company could refinance.

It was too early to say if creditors would get paid if it could not.

Lawyer Terry Kirkham, acting for Fulton, said he was not satisfied that Fairfield Finance had the right to appoint a receiver.

"We are seeking a detailed explanation from the finance company's lawyer."

Fulton said he did not wish to comment at the moment as he was considering court action.

Ewers was unable to be reached for comment.

- NZPA