MCLAREN FALLS FESTIVAL LIMITED (IN LIQUIDATION)
LIQUIDATORS’ FINAL REPORT
Section 257 of the Companies Act 1993
The liquidators are able to report that the liquidation of the company has now been completed and
now set out the final report to creditors and shareholders of the company.

INTRODUCTION
McLaren Falls Festival Limited (“the Company”) was put into liquidation by shareholder’s resolution
on the 14th of December 2015 at 4:40p.m. Simon Dalton, Chartered Certified Accountant, and
Matthew Peter Kemp, Chartered Accountant, were appointed joint liquidators of the company. As the
assets of the business have now been realised, it is appropriate that the liquidation be finalised.

STATEMENT OF REALISATIONS AND DISTRIBUTIONS
Realisations
Antecedent Transaction recovery
Refunds of prepayment
Interest Received
Return of funds held on Trust
GST refunds
Distributions
Advertising
Legal Fees
Liquidators fees and costs
GST on liquidator’s costs
Preferential Distribution
Secured Creditor Distribution

78,674
4,493
1,293
15,269
68,412
$168,140
659
5,447
67,130
10,070
17,847
66,987
$168,140

COMMENTARY
The Company was incorporated to promote and organise a music festival originally scheduled to be in
McLaren’s Park in the Bay of Plenty, and subsequently Vector Arena in Auckland. Ultimately, the music
festival did not go ahead leaving the company with insufficient funds to meet its obligations. As a
result of the failure of the event, the shareholder/director resolved to place the Company into
liquidation.
The Company had no physical assets, accordingly, the liquidators conducted an investigation into the
failure of the Company. The investigation explored multiple possible recovery actions, including the
conduct of the director and the recipients of funds.
The creditor and media interest in this liquidation has been significant, and the liquidators have spent
significant time reporting to, and answering queries of, affected creditors.

 2

At the conclusion of our investigations we identified no evidence to suggest the director has breached
his statutory duties in respect of this Company.
The liquidators identified antecedent transactions involving creditors which they believed to be
voidable. The liquidators wrote to the creditors and reached commercial settlements totalling
$78,674.
The liquidators identified payments to several artists and parties that we considered ought to be
repaid to the Company. We wrote to all relevant artists, however all artists declined to repay the
amounts received. The liquidators sought legal advice on this matter and, upon receiving the advice,
considered they had a good chance of success if an application was made to Court. However, having
regard to the individual quantum paid to the artists, and the lack of jurisdiction over many of the
international artists, it was concluded that the costs of pursuing this matter would outweigh any
potential benefit to creditors.
The liquidators identified that a ticketing company was holding approximately $30,000 on trust for
the Company from moneys received from patrons. The liquidators wrote to the ticketing company
requesting that money be paid to the liquidators, however, the ticketing company denied this request,
claiming it was entitled to a set-off against potential credit card charge-backs from purchasers. The
liquidators did not agree set-off was appropriate but ultimately accepted a payment of $15,269 as
partial resolution of this matter. Given the relatively low quantum, it was uneconomic for the
liquidators to pursue this further.
Accordingly, the liquidators are left with no further recovery possibilities and are left with only one
option being to finalise the liquidation.
We received 242 unsecured creditor claims totalling $481,105.53. Individuals who are owed refunds
for the purchase of tickets from the Company are classified as unsecured creditors, these individuals
make up 220 of the unsecured creditor claims. We have also received a secured claim in the amount
of $400,000. This creditor received a distribution of $66,517 in respect of this claim. Three creditors
withdrew their claims after successfully challenging their credit card payments.
We have also received one preferential claim for $17,847 in respect of unpaid PAYE and GST which
has been paid in full.

DISCLAIMER
The liquidators do not accept any responsibility for any errors or omissions in this report, nor do
they assume any responsibility or liability for any losses occasioned to any party as a result of the
circulation, publication, reproduction or use of this report. Interest receipts are reported net of a
10% trust account management charge.
We reserve the right but will be under no obligation to revise this report if we consider it necessary to
do so in the light of any information existing at the date of the report, which becomes known to us
after that date.

STATEMENT PURSUANT TO SECTION 257 (1) OF THE COMPANIES ACT 1993
All known assets have been disclaimed, realised, or distributed without realisation, and all proceeds
of realisation have been distributed.

 3

The company is now ready for removal from the register of companies.

POWER TO OBJECT
Any person may deliver to the Registrar of Companies, an objection to the removal on any one or
more of the following grounds:
 That the company is still carrying on business or there is other reason for it to continue in
existence; or
 That the company is a party to legal proceedings; or
 That the company is in receivership, or liquidation, or both; or
 That the person is a creditor, or a shareholder, or a person who has an un-discharged claim
against the company; or
 That the person believes that there exists, and intends to pursue, a right of action on behalf
of the company under part IX of the Companies Act 1993; or
 That, for any other reason, it would not be just and equitable to remove the company from
the New Zealand register
Dated this 27th October 2016

Simon Dalton
Joint Liquidator

Gerry Rea Partners
P O Box 3015, Auckland
Telephone +64 9 377 3099
gerryrea.co.nz