Liquidators to put Wilson Neill out of its misery

By SIMON HENDERY

Wilson Neill Corporation - the one-time glamour company that has left a trail of debt and more than 8000 investors holding worthless shares - is being put out of its financial misery.

The process of winding up the failed hospitality and technology conglomerate began yesterday with the company being placed in receivership and liquidation.

Christchurch-based Gold Band Finance, which has a debenture over Wilson Neill, appointed Auckland accountants John Cregten and Steve Tietjens as the company's receivers.

Cregten said he had still to be briefed on Wilson Neill's debts, and probably could not give any indication of their size or the payout creditors might eventually receive for a couple of weeks.

In the High Court at Auckland, Justice David Baragwanath appointed John Waller and Vivian Fatupaito of PricewaterhouseCoopers as liquidators of Wilson Neill following an application to wind the company up by accounting firm Gosling Chapman.

Asked by Justice Baragwanath if the receivership was likely to "exhaust the assets" of Wilson Neill, its lawyer, Bruce Stewart, QC, said it would probably not - an indication that unsecured creditors may receive at least a partial payout.

Lawyers for another creditor, Caledonian Leasing, a subsidiary of supermarket group Progressive Enterprises, also appeared in court with a similar winding-up application. Its action was dismissed after Gosling Chapman's application was granted.

Caledonian and Auckland's Omni advertising group also made separate applications to liquidate Wilson Neill restaurant subsidiary Cobb & Co.

The four winding-up applications had been adjourned last month after Wilson Neill asked for time to sell assets.

Last week it announced the sale of the franchised Cobb & Co business - for a price understood to be less than $500,000 - to a company owned by Queenstown businesswoman Karen Boult, former Shotover Jet managing director Jim Boult and Roger Pierce. But the sale did not bring in enough to settle the company's debts.

Wilson Neill has also been trying to sell its other assets - Parnell's Iguacu restaurant and bar, and wireless internet company Radionet.

It has suffered the effects of several failed expansion deals, unsuccessful new ventures, and allegations of shonky corporate governance over the past two years.

In February it reported a $24 million loss for the 15 months to June.

The Ministry of Economic Development's National Enforcement Unit has written to directors asking them to explain why the accounts were filed almost two months late.

Wilson Neill group general manager Phil Vosper declined to comment on the receivership and liquidation.