Kiosk venture has $1200 to pay $3m debts: liquidator

By RICHARD PAMATATAU


Zip Internet has collapsed owing almost $3 million, according to a report filed by liquidator McDonald Vague.

The liquidator was also appointed last week to wind up failed associated venture Global Internet.

John Whittfield of McDonald Vague said it looked like the castle was collapsing.

The Zip collection of internet companies aimed to put kiosks into shopping malls, hotels and motels to allow customers to browse the net for free. Revenue would come from advertising on the kiosks themselves and via the web. Investors were sold kiosks and understood they would receive a share of the advertising revenue from each kiosk.

The report on Zip says the company has just over $1200 in its bank account and owes creditors almost $3 million. Preferential creditors are owed almost $43,000. It appears there is little chance of them recovering much.

Whittfield said there was little left in the company. He had sighted around 30 kiosks but did not know if they were in working order.

Some were just shells without computers.

The real issue now was establishing ownership among a group of investors, some of whom had paid for the same kiosk.

Whittfield said he had advised kiosk owners to take legal advice.

Detective Ian Tuke of the fraud squad said liability was now being assessed.

James Potter is listed as director but the assessment may also include former director Dean Williams, who is also a shareholder.

The other director, Kenn Rangi, died this year.