Update, 17 July 2004: New liquidators were appointed to 3 of John Ede’s companies – Dimension Residential Ltd, Edmonton Group Ltd and 182 McLeod Ltd â€“ on Friday 9 July after an IRD courtroom challenge to the shareholder appointments.
The original appointments were of Grant Reynolds & Gilbert Chapman (Reynolds & Associates Ltd).
After a hearing in the Auckland High Court, Associate Judge John Faire appointed Richard Agnew & Vivian Fatupaito (Pricewaterhouse Coopers) to the job. They have given creditors until Saturday 9 October to file claims.
IRD challenges appointment of liquidators to 4 Ede companies
Inland Revenue has contested the appointment of Grant Reynolds & Gilbert Chapman (Reynolds & Associates Ltd) as liquidators of 4 of John Ede’s companies â€“ Dimension Residential Ltd, Ede Investments Ltd, Edmonton Group Ltd and 182 McLeod Ltd.
Associate Judge John Faire listed to argument in the Auckland High Court during the regular liquidations list call today and adjourned the hearing to Friday 9 July at 10am to deliver his judgment, which I’m unable to attend. I’ll catch up with it in due course.
Mr Ede’s business has been in difficulty, or worse, for more than 2 years. He tried to put a debt-compromise scheme together under the Insolvency Act, got the votes at a creditors’ meeting in May but had his scheme rejected by AJ Graham Lang in the High Court on 25 June.
Meanwhile, most of his companies have been in receivership or have been placed in liquidation.
Inland Revenue’s application to wind up 182 McLeod Ltd was adjourned from 17 June to 8 July for settlement, to come from a 6-year lease of the company’s building. Inland Revenue wanted the company wound up because the $128,000 debt included Paye & student loan deductions, but agreed to the adjournment after last-minute negotiations, and being told the company no longer had any employees.
When Inland Revenue’s lawyer got to court on 3 June with the intention of having Dimension Residential Ltd & Edmonton Group Ltd wound up, the court was told they’d gone into voluntary liquidation on 1 June, with Mr Reynolds & Mr Chapman appointed liquidators. Inland Revenue’s applications weren’t struck out, but were adjourned to 8 July so the appointments could be confirmed.
Reynolds & Associates issued a public notice on 1 July saying 6 of Mr Ede’s companies were placed in liquidation on 24 June â€“ including 2 where the liquidator appointments are in question, 182 McLeod Ltd & Ede Investments Ltd.
The questionmark over the liquidators’ appointment arises from the required written consents: Mr Chapman wrote a letter on 28 May saying he & Mr Reynolds agreed to handle the liquidations and would sign a consent later.
AJ Faire noted that nothing had been signed by Mr Reynolds, while Inland Revenue’s lawyer, Gareth Neil, asserted that the letter purported to be written on behalf of Reynolds & Associates Ltd, not the individual liquidators-to-be.
25 June 2004: Ede fails in 30c/$ bid, bankrupted and numerous U column items over the past 2 years.