Liquidator's report bad news for Nosh creditors

NZX-listed Veritas Investments sold Nosh in February last year to Gosh Holdings, which was renamed Nosh Group, for $4 million. Picture / Jason Oxenham.

Unsecured creditors waiting to be paid by Nosh Group may have had their fears confirmed by the latest report by the liquidators of the upmarket supermarket chain.

Inland Revenue launched proceedings against the company after it was put in receivership by director Andrew Phillips in July last year. After IRD issued the proceedings, the company was put into liquidation.

A liquidator's report last week from RES Corporate Recovery Insolvency said a claim had been received from Inland Revenue for $318,705.32, of which $285,629.82 was preferential in respect of outstanding GST, student loan deductions, KiwiSaver employer and employee contributions, and PAYE deductions.

There were preferential claims from employees of $324,201.

Claims from unsecured creditors totalled $2,118,239.

"Due to the amount still owing to secured and preferential creditors we do not consider it likely that there will be any distribution to unsecured creditors," the report said.

"Only if it is likely that there will be sufficient funds available for a distribution to unsecured creditors will unsecured creditors be inspected to be admitted for distribution."

A review of the company records for the period leading up to RES' appointment was not yet complete.

"We are conducting an investigation into the company's books and records to establish whether all assets have been accounted for and if there are any voidable transactions or other recoveries that are viable to pursue, including whether the director and other parties have complied with the duties imposed on them under the [Companies] Act," the report said.

NZX-listed Veritas Investments sold Nosh in February last year to Gosh Holding, which was renamed Nosh Group, for $4 million. Veritas said last year it was owed about $69,000 by the chain's new owner.