Armaguard moves to get Cash Handling Systems back on track

Aussie-business giant Armaguard has part-purchased the now defunct Cash Handling Systems for an undisclosed amount.

As previously reported in the NBR's print edition, Cash Handling Systems – the company that pioneered Txt pay and display parking – was put into liquidation by the High Court at on April 3 following an application shareholder and co-director Mark Oliver, who claimed the company was insolvent.

Co-director Russell Waite then claimed that the company was solvent and the Mr Oliver deliberately did not renew the company’s trade finance and products were delayed.

He believes that the liquidation of the company was done so that the Mr Oliver, Shape Technology and Armaguard could get hold of the business cheaply.

Armaguard national general manager Keith Broadhouse told NBR that Global International Solutions, which is partly owned by Armaguard-owned firm ACM, had taken control of the company’s assets.

He says the company had huge plans to invest in the company and would be looking at not only expanding it into Australian but also into Southeast Asia.

“We think there are huge synergies with our company,” he says.

Armaguard previously told NBR that the company was working alongside the liquidator and was being advised by them and that the purchase was entirely lawful.

According to the Companies Office website Global International Solutions is part owned by ACM Holdings and part-owned by Shape Technology. Shape Technology is a Christchurch firm that was responsible for the manufacturing of much of CHS machinery.

NBR understands that Shape Technology has been servicing many of the machines around the country for the various councils that own them including those owned by Queenstown Lakes District Council.

GIS was formed the day that Cash Handling Systems was put into liquidation.

The liquidators of Cash Handling Systems Ltd confirmed the sale.

“Existing staff will be offered employment with the purchaser,” the liquidators say in a statement.

“While the liquidators have not finalised the quantification of creditor claims, current indications are that the price obtained will be sufficient to make a significant repayment of creditors' debts if not 100%. The liquidators consider this to be an outstanding result in the current market conditions,” it says.

This article is tagged with the following keywords. Find out more about My Tags

Post Comment

12 Comments & Questions

Commenter icon key: Subscriber Verified

Interesting that everyone was working with the liquidator on this front, when Shape Technology were approaching Councils prior to the actual liquidation date offering their new services, I think the missing componant is T5 Solutions Ltd (where the Oliver brothers are registering their share) which is the former CHS staff vehicle registered soon after which no doubt will join the fray as things calm down.

At the very least this transaction was questionable, although well planned and executed over a prolonged period of time.

Why would the Liquidator not entertain any communication with numerous other entities that had expressed interests in purchasing CHS? There may well have been a better offer to consider which could have ensured full payment of creditors debts.

David Gould one of the Directors of the new GIS and former GM of CHS was approached months earlier by Task Technology another ACMNZ Linfox Armaguard Company

The attractiveness of CHS in liquidation to those successful purchasers is simply to corner the on street local government parking sector with Intellectual Property that will force Councils into contracts with them due to the capital outlay already invested by the Councils in proprietary parking machinary.

If the NBR had a half pie decent investigative journalist that could actually delve into this questionable affair, it may find a story that was of real interest to its audience and enhance its reputation as a journal of substance, rather than as per usual repeating the words of benign corporate personalities that through a miriad of associated companies provides advertising revenue.

If you had the urge try looking at the directors and entangled web of the following companies;

Global Integrated Solutions Limited, 2227543
ACM Holdings (NZ) Limited, 1873030
ACM New Zealand Limited, 2194349
Task Transactions Limited, 1299587
Shape Technology Limited,
T5 Solutions Limited, 2217327
Oliver Bid Co Ltd (formerly CHS Global), 2166467
KYMSM investments Ltd, 1721994
ETAY Investments Ltd, 1901152

Try a few Councils for comment and dates of meetings.

Christchurch City Council, Wellington City Council, Hutt City Council, North Shore City Council, Palmerston North City Council

Ask task technology at what date they approached David gould last year.

Ask the Liquidator how many expressions of interest he received and how many he responded to.

You may find a starting point.

Why would anyone when not accused of anything state "Armaguard previously told NBR that the company was working alongside the liquidator and was being advised by them and that the purchase was entirely lawful".

Come on NBR dig around and report something revealing and interesting and impartial.

Reply
Share

I agree with the previous writer. There is far more than meets the eye here. Firstly these companies were ALL profitable, yet Mr Oliver placed CHS in liquidation for INSOLVENCY after paying down not only all the trade finance but also other loans from the bank. In fact this company had very little debt and quite considerable assets. When you know that Mr Oliver had control of the intellectual property of the company and not Mr Waite then you also know that he had tipped the playing field in his favour in purchasing the company. The liquidators were quick on selling and provided no warranties around the intellectual property. Hence investors other than Mr Oliver were at a considerable disadvantage. NBR should investigate this one - this appears to be, at a minimum, theft of a profitable iconic kiwi company with lots of opportunity, at a maximum a full blown underbelly fraud.

Reply
Share

I think none of you know the full extent until you have worked there. Russell Waite is an exagerater and a liar who never spent time in the auckland office. I think it rideculous the amount of time it has taken to sort through this. Mark Oliver is one of the best and most un selfish bosses that cared a lot about the business and put so much time and effort into CHS.

Reply
Share

This morning one of your arogsnt drivers parked in the mobility park out dide ASB bank in blockhouse bay whil i wanted to park there. i have a mobilty card which i pay for--he has not and toold me to go away. this guy shoud not be whering ACM uniform ---he is arogant . this happeend @ 10 30 am thursday o8 september.

Reply
Share

Thanks for your comments on the story. You may be interested to note most of the above information you mentioned was outlined in a story two Fridays ago in our weekly investigative newspaper (line three indicates this) and this can be purchased online.

This story was written purely as an update to the original stories and because of the format of web it was not suitable to delve into this information again.

Hope to see you as a regular subscriber.

Reply
Share

Well said Lucy, obviously anonymous is suffering and looking for a release and thought he had found an easy target in you, good on you for standing up for yourself.
Keep up the good work and continue with the great investigative journalism.

Reply
Share

Regardless of whatever infighting led to the demise of Cash Handling Systems, it is good to see that it appears that the company will continue trading, and hopefully continue manufacturing in New Zealand. C.H.S. and L.W.R. both seem to have demonstrated that when business gets personal, the business suffers.

Reply
Share

'Good to see that the company will continue trading' - yeah whatever. The people behind this company incurred a large debt with us, misleading us as to our prospects of being paid for many months. In this economic climate their failure to pay us has hurt us, and our creditors, with cynical disregard.

The liquidator has not even called a meeting, which they have to do if the creditors want it. So that's another question, please NBR? This company is awash in income and earnings and there is no reason we shouldn't be paid, but we need the money NOW and the liquidators need to move their processes along to at least get a payment to account.

Reply
Share

I would be unhappy too if the liquidator didnt call a meeting as they were required to do. This just doesnt look right. This company had just won the Dunedin tender when it went down and the Australian subsidiary already had won two other council tenders. It was I understand selected as a front runner for the $15million tender for Brisbane - the liquidator has assigned the rights to the new company GIS. So there should be megabucks paid for the sale. If there isnt then there should be questions to answer for the liquidator - particularly if they have taken profitable companies and made them into shells without enough for creditors or creditors having to hold on for any time without being paid.

Reply
Share

One should ask the question that why is it that the only third party who got to "work along side the liquidators" was Mr Keith Broadhouse. All other third parties were not even given the opportunity to know what was being put up for sale.

Doesn't anyone find that coincidental?

Reply
Share

Excellent! Don't you all go worrying about CHS/GIS, it'll go the same way other Armaguard acquisitions in NZ have gone, down the pan! ACM Holdings financials are available at the companies office and make interesting reading. (NBR could do a story on it - headline: "Good Companies Gone Bad". Hah!) In fact, the June 10 financials still haven't made it to the companies office yet (bad news again Keith?), well outside the time frame required. Whoops, surely this will mean a fine for the Directors?

Reply
Share

Move on , get over yourself,we all have regrets.Start enjoying life,instead of looking for reasons why the Company is no Longer around,and looking to blame it's failure !

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7850 0.0000 0.00%
AUD 0.8924 0.0000 0.00%
EUR 0.6196 0.0000 0.00%
GBP 0.4880 0.0000 0.00%
HKD 6.0917 0.0000 0.00%
JPY 84.8970 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1231.3 -0.710 2014-10-24T00:
Oil Brent 86.1 -0.510 2014-10-24T00:
Oil Nymex 81.0 -1.020 2014-10-24T00:
Silver Index 17.1 0.024 2014-10-24T00:

Indices

Symbol Open High Last %
NZX 50 5292.8 5344.4 5341.7 -0.15%
NASDAQ 4459.5 4486.3 4452.8 0.69%
DAX 9008.6 9044.9 9047.3 -0.66%
DJI 16677.0 16811.7 16677.9 0.76%
FTSE 6419.1 6419.1 6419.1 -0.47%
HKSE 23311.9 23352.6 23333.2 -0.13%
NI225 15354.4 15377.0 15139.0 1.01%