The first liquidator’s report on Suzanne Paul’s Rawaka Cultural Experience company, Rawaka Ltd, shows an estimated $1.16 million deficiency for unsecured creditors.
Jeff Meltzer & Mike Lamacraft (Meltzer Mason Heath) were appointed liquidators on 14 July and issued their first report today.
The business was in the former Fisherman’s Wharf restaurant on the Northcote side of the Auckland Harbour Bridge.
The property, owned by Metropolis developer Andrew Krukziener, was put up for sale in Bayleys’ Total Property portfolio in May, showing an 8-year lease to Rawaka (originally named Stillmore Holdings Ltd) from 1 August 2003 at $230,000 net, first review in 2005.
Suzanne Paul was queen of the infomercials in the 1990s, turning her promotion of beauty product Natural Glow into a multi-million-dollar business. Her jointly owned company, Prestige Marketing Ltd, was sold for $39 million in 1996.
Rawaka, the cultural experience, suffered from the start.
The liquidators said in today’s report the company employed a consultant to secure funding for Rawaka before taking the Fisherman’s Wharf lease last year, then discovered the information supplied wasn’t correct, “therefore the opening had to be delayed until another investor was found.
“This meant Rawaka was unable to open in December as planned so the high season tourist trade was missed.
“Further, council requirements meant the company couldn’t open until April. The director then tried to secure further funding and, as of the date of liquidation, was unable to do so.”
The liquidators are seeking a buyer of the business as a going concern.
The company’s fixed assets are shown as a $464,000 deficit â€“ a net 2 years’ lease. The shortfall to secured creditors is given as “unknown”.
Unsecured creditors are: Wages, holiday pay, PAYE $30,000, loans $326,500, trade creditors $482,000, shareholders $355,000 (as at March). The company has $100 capital, $500 of unpledged debtors, and a net deficiency (excluding the shortfall to secured creditors) of $1,163,500.
Creditors should file claims with the liquidators by Monday 16 August. An initial creditors’ meeting will be held at the Institute of Chartered Accountants, Ohinerau St, Remuera, on Friday 30 July at 10am.
Ms Paul (married name Suzanne Kilworth, 65 shares) formed the company in January 2003 with Walter Kilworth (5 shares) & Duncan Wilson (30 shares). She is the sole director.
Liquidator’s website: Meltzer Mason Heath