Culturesafe NZ Limited: A Two-Year Liquidation Journey
25.01.2025
Article
Culturesafe NZ Limited, an employment advocacy firm, has been in liquidation since August 2022 following its inability to pay court-ordered penalties of $67,036. The liquidation process, overseen by licensed insolvency practitioners Steven Khov and Kieran Jones, has faced delays and complexities due to ongoing legal disputes and incomplete financial records. The company’s entanglement in unrelated legal matters has further added to the complexity of its liquidation journey.
The latest liquidators' report (July 2024) reveals a significant financial deficit:
- Preferential Creditor Claims: $41,787, covering unpaid GST and employment-related liabilities owed to Inland Revenue.
- Unsecured Creditor Claims: $203,911, primarily owed to trade creditors and Inland Revenue for penalties and interest.
- Liquidation Costs: Accumulated fees totaling $58,996, with $55,219 yet to be invoiced.
The company’s realized assets stand at $169,785, which includes an overdrawn shareholder current account of $165,290 and limited receivables. Despite the efforts of the liquidators, the estimated deficit before liquidation costs is $75,913, with no distributions made to creditors so far.
Culturesafe’s legal history has been turbulent. The company is involved in unresolved Employment Court matters and is the subject of court hearings in unrelated cases. A recent Employment Court judgment dated December 5, 2024, highlights a challenge brought by Culturesafe’s director, Allan Halse, regarding a breach of a settlement agreement with the Hamilton City Council.
In the ruling, Judge J.C. Holden addressed an application for non-party discovery made by Mr. Halse against a third-party entity, Maniototo Enterprises Limited. The court required Mr. Halse to pay $1,000 into court as security for costs before Maniototo Enterprises retrieves documents relevant to the proceedings. This case underlines the ongoing disputes that have prolonged the liquidation process【24†source】【25†source】【31†source】.
The liquidation process has been complicated by the non-cooperation of Culturesafe’s director, who has failed to provide critical company records and assets despite multiple requests. Additionally, assets sold before liquidation at undervalued prices are under investigation, as are the company’s broader financial affairs. The director’s personal bankruptcy proceedings further hinder the recovery of funds, including the overdrawn shareholder current account.
The liquidators continue to pursue recovery actions, investigate financial transactions, and liaise with creditors. However, with unresolved legal disputes and incomplete information, the liquidation’s conclusion remains uncertain. Culturesafe NZ Limited’s case serves as a reminder of the complexities involved when insolvency intersects with legal challenges and non-compliance by company directors.
For further updates, creditors and stakeholders are encouraged to refer to the official reports issued by the liquidators and court judgments【24†source】【25†source】【31†source】.