Bleak outlook for Auckland Tuatara baseball creditors owed $1.75m

The Auckland Tuatara joined the Australia national baseball competition in 2018. Photo / Richard Spranger, Photosport

New liquidators of the corporate entity that operated the Auckland Tuatara baseball franchise are working to recover some financial losses, but the outcome for unsecured creditors owed $1.7 million seems bleak.

Auckland Tuatara GP Ltd was placed in liquidation following a court application by Streamshop, a video production company.

Iain McLennan and Boris van Delden of insolvency firm McDonald Vague were officially appointed on May 16. That followed an “invalid appointment” of a different liquidator by the company shareholders, according to a report lodged at the Companies Office.

The entity in liquidation is the general partner of a limited partnership behind the baseball team, which could not compete in the Australian league from 2020 to 2022 due to Covid travel restrictions.

In his first report, McLennan said the sports team operated at a loss, without any apparent access to funding and cashflow difficulties that meant it could not continue.

“As a result, unrelated and related trade creditors were not able to be paid. The liquidators are working with an insurer in order to secure the recovery of a relatively small portion of the losses incurred.”

A statement of affairs shows unsecured creditors are owed $1.75m, most of which is claimed by trade creditors.

Related party loans of $469,493 are also listed, along with an IRD small business loan of $10,185.

With assets of just $144,565 there is unlikely to be any money left over for unsecured creditors - given a Bank of New Zealand claim of $2272 and the petitioning creditor Streamshop’s claim of $5865 ranking higher in the liquidation.

The amount owed also excludes sponsorship receipts from shareholders, including Baseball New Zealand, which advanced Auckland Tuatara $240,000 in the form of sponsorship and loans in the March 2022 year.

Baseball New Zealand is an incorporated society with a 48.46 per cent shareholding in Auckland Tuatara GP.

Other shareholders include Noel Davies (18.17 per cent), Mark Gilbert (12.12 per cent), Michael Veeck (9.14 per cent), Kerry and Lisa Avery (6.06 per cent) and John Fellet (6.06 per cent).

The first liquidator’s report lists about three dozen creditors, including the Australian Baseball League, accommodation providers and a travel agent.

When news broke of Auckland Tuatara’s insolvency in April, the directors blamed the impacts of Covid travel disruptions and a significant increase in costs across the business.

Club spokesman Dale Budge told RNZ it felt like he and his team had given everything without a whole lot to show.

“We put a heck of a lot of time and energy and money and effort into this over the last five years. It’s been all-consuming and it’s never been easy. There’s been a lot of challenges which just made it impossible to continue.

“Shortly after bringing the franchise to life, we were hit with the impacts of Covid, travel restrictions and the financial implications that came with it.

“We feel for the staff, who have worked tirelessly to keep the lights on, for the players and coaches that no longer have a local team to play for and for the sport that has lost its public face.

“It is a very sad day for our sport.”

Duncan Bridgeman is managing editor of NZME Business, including the Business Herald and BusinessDesk.