STARGATE OPERATIONS LIMITED
(IN LIQUIDATION)
LIQUIDATORS’ THIRD REPORT
Pursuant to Section 255(2)(d)
of the Companies Act 1993
For the Period from
15 November 2015 to 15 May 2016

1.

PROGRESS OF THE ADMINISTRATION OF THE LIQUIDATION
The Liquidators report herewith on the progress made in the liquidation of Stargate
Operations Limited. Included in this report is the Liquidators’ statement of realisation and
distribution to date.
This third report to creditors follows the second report and should be read in conjunction
with the previous reports. This report is being sent to all shareholders and to all
shareholders and creditors who have filed a claim in the liquidation.
The Liquidators have successfully disposed of all company assets and are currently
reviewing and receiving advice in relation to other avenues of possible realisations for the
benefit of the Creditors of the company.

2.

REALISATION OF COMPANY ASSETS
2.1

Debtor Payments
The Liquidators have written to all debtors and to date have received $1,041.00.

2.2

Fixed Assets
The fixed assets of the company have been sold by the Liquidators to realise a
total value of $229,573.00.
These assets comprised laboratory equipment, assets of the music studio and the
costume and prop hire branch of the business.

2.3

Loan Repayments
Upon their appointment the Liquidators identified a number of loans owing to the
company. The Liquidators have received $73,919.72 in repayment of the amounts
outstanding following statutory demands being issued by the Liquidators Solicitors.

 2.4

GST Refund
To date, the Liquidators have received $3,060.91 in GST Returns.

2.5

Other Refunds
A refund for a building consent has been received from the Auckland Council for
$2,121.04.

3.

INVESTIGATIONS
The Liquidators are continuing to investigate the books, records and affairs of the
company.
Matters that are giving rise to further investigations include:


Collection of the overdrawn Shareholders current account.

The Liquidators have been advised that the Director is residing in Thailand, however they
have been unable to contact the Director for a period of time.
4.

CREDITORS’ CLAIMS
4.1.

Preferential Creditors
The Liquidators consented to the continuation of actions brought against the
company regarding an employment dispute. The Employment Relations Authority
(ERA) found in favour of the Employee.
As a result of this finding, the Liquidators anticipate a revised proof of debt,
claiming a significant preferential sum, will be lodged by the Inland Revenue
Department (IRD) in the coming weeks.
The Inland Revenue Department has submitted a preferential claim of
$1,045,029.94.
Employees
There was a total of $457,928.57 outstanding to 8 employees at the date of
liquidation, in respect to holiday pay, redundancy pay, bonuses and unpaid wages.
The Liquidators sought legal advice on the admissibility of these claims as
preferential in the liquidation. As a result of this advice, $137,009.61 has been
admitted in preferential claims for 8 employees.
As at the date of this report, all admitted preferential employee claims have been
paid in full.

 4.2.

Unsecured Creditors
As at the date of preparing this report, 22 unsecured creditors’ claims have been
received which total $2,195,001.63. In the interests of minimising Liquidators’
fees, the Liquidators will not attend to the formality of accepting or rejecting
creditors’ claims until such time as we are in a position to pay a distribution.

5.

FUNDS/LIKELY OUTCOME
The Liquidators have made full distributions to all admitted preferential employee claims.
In addition, the Liquidators are continuing to pursue additional avenues of collection, the
result of which will largely dictate future distributions to creditors.

6.

CONCLUSION
Based on the above, it is too difficult to determine a timeframe for completion.

Any queries can be directed to Lachie Davidson (ldavidson@rodgersreidy.co.nz) of these
offices.

Yours faithfully
for Stargate Operations Limited (In Liquidation)

_________________________
Derek Ah Sam
Joint Liquidator
dahsam@rodgersreidy.co.nz

DATED: 27 June 2016

 NAME OF COMPANY:
SUBJECT:

STARGATE OPERATIONS LIMITED
LIQUIDATORS’ STATEMENT OF REALISATIONS AND
DISTRIBUTIONS FOR PERIOD 15 May 2015 to 15 May
2016
Cash Received

CASH HAS BEEN RECEIVED AS FOLLOWS:
Sale of Fixed Assets

$
229,573.00

Debtor Payment

1,041.00

Auckland Council Refund

2,121.04

IRD GST Refund

3,060.91

Loan Repayment

73,919.72

Total Realisations

CASH HAS BEEN PAID AS FOLLOWS:
Liquidators’ Fees
Disbursements
Fuel Reimbursement

309,715.67

$
74,997.08
1,350.00
36.96

Preferential Distributions (Employees)

98,864.30

PAYE

40,044.64

Legal Fees

24,229.17

Contractor Expenses
Bank Fees

105.00
29.00

Accounting Services

777.40

Accounting Software

74.75

Security Expenses

1,086.56

Valuation Costs

4,485.00

GST Paid

22,694.65

Total Distributions

268,774.51

Total Realisations

309,715.67

 Total Distributions
Balance Held on Trust

Note: The above figures are GST inclusive

_________________________
Derek Ah Sam
Joint Liquidator

DATED: 27 June 2016

268,774.51
40,941.16