Fisher flounders under red tape

By IRENE CHAPPLE

Listed Wellington fishing company Seafresh, struggling with debts of more than $1 million, may be sunk by red-tape fees of $10,000.

The statutory administration levies, charged by the Ministry of Fisheries, date back to February.

The ministry has filed an application with the High Court at Wellington to put the company into liquidation. The matter is due to be heard on September 2.

Spokesman Russell Burnard said the ministry had been talking with the company, but could not recover the money.

The ministry was under a statutory obligation to collect the debt, and was forced to take Seafresh to court, he said.

The announcement, made in a public notice, comes after Seafresh's June employment of self-described turn-around management specialist and former Brierley executive Paddy Marra.

Last month he wrote a letter to creditors asking them to hold off from calling up their debts while he prepared a report analysing the company's position.

The letter sparked the company's suspension from the Stock Exchange.

The exchange was already disgruntled by Marra's purchase, with three others, of 55.98 per cent of the company.

That was deemed a breach of the Takeovers Code as the four were found to be acting in concert. However, the company was given leeway to seek exemption from the code after approval from its shareholders.

This month Seafresh tripped up again, failing to meet Stock Exchange obligations to file its half-year report.

Marra, understood to be overseas, was not available for comment.