NZ Geographic magazine goes into liquidation

Auckland-based magazine publisher New Zealand Geographic has gone into liquidation owing $828,500.

Insolvency specialists Jeff Meltzer and Mike Lamacraft, of Meltzer Mason Heath, told creditors in a letter that the shareholders of New Zealand Geographic - Roland Arthur Ellis and Northview Investments - had been funding the company's trading for a considerable time.

But insufficient subscribers, coupled with a high cost base, meant the company was not profitable.

"The shareholders explored certain options to achieve a turnaround, including alternative funding arrangements, but these were not successful," the liquidators wrote.

"The shareholders were not prepared to provide further funding. Having taken appropriate advice, it was determined that the proper course of action was to place the company in liquidation."

As it was unlikely there would be a distribution to creditors, Meltzer and Lamacraft said they would not hold a meeting for them.

A financial report accompanying the letter shows secured creditors are owed $241,000. After deducting assets, there is a shortfall of $194,000.

Shareholders have advanced $293,500, trade creditors are owed $200,000 and unexpired subscriptions total $140,000.

Together with the paid-up capital, that leaves $828,500 owing - exclusive of realisation costs and liquidators' fees. Creditors have until March 9 to submit a claim.

- NZPA