Receivers show $6,000,000 error

I find it somewhat surprising that a director of a company does not know  what the company is worth.

Both Anthony John MCCULLAGH and Stephen Mark LAWRENCE are the receivers for Tony Tay film Limited   . they are also directors of Auckland film studio in which Tony Tay film is  the majority share holder.

Yet as Directors  of the  Auckland film studio ( in which the Auckland rate payers have a significant stake )    they were unaware of  the value of the  company and   incorrectly represented the value in the  receivers first report

This morning   I received a phone call from mr Lawrence who advised me that   a new report would be published   and sent me a copy of the  corrected values.  he also   told me that I was  on a witch hunt.

the amended report will be filed in 20 days time after the ir request to  remove the first report and substitute it with a second is   advertised in the public notices.

So here  is a preview of the  amended figures

the question has to be   How can directors  and receivers  get it so wrong what checking  do they do on  the reported figures.. none by all accounts.

These guys have been directors of Auckland film  since 28 Feb 2011  ,  Their interest is not in  the long-term survival of  Auckland film studios    their interest is to secure as many assets as possible for the  person appointing them  who in this case is the person charged with running the studios.

If he has  sent the  corporate undertakers in   what  interest has he got in the  long-term   health and well-being of  Auckland film..    to me all it looks a bit   counter productive.

If I had a company   in which the job of   2/3 of the directors  was to plunder it for assets I would be concerned.

I would be further concerned if  the  person I was employing  as on site manager of the  operation was the person who had engaged these directors  and they are effectively working for him and then  make an error of a mere $6 mil

I’m not in this for a witch  hunt ..   but since no one in council is asking the  questions  that I  have  you wonder   about who actually cares  about  our assets.

Guess we can all pay a few more $ in rates. as long as the rich get richer  the  plebs can keep paying.

2 Responses to “Receivers show $6,000,000 error”

  • Paul Wedding:

    The below is intresting….

    http://www.mvp.co.nz/articles/by-mcdonald-vague/'friendly-liquidators'—a-further-discussion

    Registration of Insolvency Practitioners
    The one thing upon which many professionals agree is the need for the registration of insolvency professionals. As it stands, at the present time a liquidator needs no academic qualifications, no training and no experience. The only requirement is that the liquidator must not be less than 18 years old, must not be a creditor, must not be a director, must not be a bankrupt, and must not be committed under the Mental Health Act. No positive attributes whatsoever are required.

    • transparencynz:

      Hi Paul thank you for your comment on transparency.

      Yes you are right those are the only qualifications that they need. I even had a case where the liquidator did not exist. Charges over alleged fake liquidator

      If you are a creditor you do have the ability to object in the initial period and ask for an independent liquidator to be appointed. It is common practice for companies who go into voluntary liquidation ( usually to beat creditors to it ) and appoint their own tame liquidator. The assets are then generally sold on to a colleague at rock bottom price and we are back to business as usual but look no more debt!

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