Bad news for IT Media creditors

By PAUL PANCKHURST

The liquidators of crashed media company IT Media - once a part of Wilson Neill - have reiterated that unsecured creditors are unlikely to get anything back.

Auckland-based IT Media went into receivership on February 27 and liquidation on November 14.

The first report from liquidators Vivian Fatupaito and Richard Agnew, both of PricewaterhouseCoopers, said a return was "unlikely" - "and if so, it is not anticipated to exceed 20c in the dollar".

Receivers Michael Stiassny and Grant Graham, of Ferrier Hodgson, reported in October that employees - who are preferential creditors - would get 19.36c in the dollar.

However, the receivers said, after realising the company's assets, the debenture holder, Elders Finance, remained short by $1.4 million and unsecured and second-ranking preferential creditors would get nothing.

An initial report by the receivers in April said the company owed $2 million in total.

The liquidators said they would investigate whether company officers had breached the law and whether any transactions before the liquidation were "voidable" - or, in other words, could be set aside.

They said the liquidation was expected to be wrapped up by the end of next year.

IT Media and publisher Tim Connell were behind the ill-fated New Zealand Business Times, a business weekly. The company's main publishing assets were NZ Rugby World and NZ Fishing World.