Little progress on LWR debts

Six months after textile manufacturer Lane Walker Rudkin (LWR) entered receivership, its administrators have yet to make significant progress in paying back the money it owes.

Despite cutting costs by laying off 200 staff, raising $9.07 million through selling off stock and equipment and selling one of its companies, Southern Alps Socks, for $1.06 million, receivers had made little headway in paying off the $118 million owed.

Of the money raised, $2 million went to Westpac. Former employees received $1.06 million and Inland Revenue received $333,152. The receivers paid themselves $750,517 for their work over the past six months.

The company still owed Westpac $110.27 million, unsecured creditors $6.7 million, Inland Revenue $578,172 and its employees $830,658.

LWR, owned by businessman Ken Anderson, collapsed in April.

In October last year, the Serious Fraud Office launched an investigation into the company after a referral from its receivers.

Receivers Stephen Tubbs and Brian Mayo Smith of BDO alleged LWR misrepresented its financial strength to Westpac to borrow money.

- NZPA