Business put into liquidation

A Hamilton dealership has been placed into liquidation after falling behind on loan payments and owing Inland Revenue a reported $87,110.

Vanz Motor Limited, which trades as Vanz Motors, was incorporated in January 2020 but its shareholders, Vancliff and Frances Casinillo, resolved to put it into liquidation last month. 

The first liquidator’s report has been released and says the company had obtained a substantial loan facility from a finance provider but fell behind on its repayment obligations for several months. 

“As a result of these arrears, the secured creditor appointed receivers to take control of their collateral,” the report adds. 

“The company does not have sufficient working capital to maintain trading operations and to meet creditor obligations. 

“With no realistic prospect of trading out of its financial difficulties, the decision was made to place the company into liquidation.” 

The move comes after the business was put into receivership in June and a report from that time notes the company owed Inland Revenue $87,110, including a $70,939 preferential claim for unpaid GST and PAYE and an unsecured claim of  $16,170.

Benjamin Francis and Garry Whimp, from Blacklock Rose, were appointed receivers and their report notes an auction was held on July 17 and some of the company’s vehicles were sold.

“The process of realising the company’s assets is not yet complete, however due to the level of secured and preferential debt it is unlikely there will be funds available for distribution to unsecured creditors,” they say.

The Casinillos appointed Mohammed Tazleen Nasib Jan, of Liquidation Management, as liquidator of the company on August 20.

Jan’s report of August 29 shows that besides Inland Revenue, other secured creditors include ACC, ANZ Bank, four finance companies, and a used vehicle importer and distributor.

He says it is not yet practical to estimate the date of completion for the liquidation. 

Vancliff Casinillo, who is also director and owner of Vanz Motors, told the Waikato Times his company got into financial difficulties because compliance delays with imported vehicles meant he was unable to sell them and consumers went to other dealers.