First liquidation report shows Oceanic Palms owes creditors $392K, but only has $2K in assets

Brent Hubbard and Harley Haynes of Oceanic Palms. Photo/Dean Purcell

A palm growing business owes KiwiRail $232,833 in unpaid rent yet has only $2036, a liquidators' report out this month shows.

Liquidators McKay and Bethell issued a statement of affairs last week showing total liabilities of $392,833. Assets are $2036 in the bank with unknown inventory, plant and equipment, offset by Kiwirail as a judgement creditor seeking $232,833 and $160,000 "shareholder advance claim". The liquidators said that was yet to be verified.

The overall shortfall of the business to creditors is listed as unknown.

Oceanic Palms grew and retailed exotic and ornamental plants specialising in palms.

"For a number of years the business operated from leased premises in Onehunga and when the lease expired in 2015 and a new lease offered, the company disputed the increased rental and litigation between the parties ensued", the liquidators wrote.

The business has listed its offices as being at 44a Alfred St in Onehunga.

"After three years of litigation, the landlords obtained judgement against the company which the company was unable to meet. Accordingly, the landlord successfully applied for the company's liquidation," the report said.

The liquidators said it was too early to estimate what funds "if any" would be available for preferential and unsecured creditors.

They do not propose holding a creditors' meeting and said that after all actions had been fulfilled, they would seek to have the company removed from the register.