Creditors owed $2.57 million after Mediaweb magazine collapse

Failed publisher Mediaweb owes $2.57 million to creditors, its first liquidators report reveals.

The trade magazine publisher was placed in receivership in March, and liquidator Garry Whimp was appointed shortly afterward as creditors applied to the High Court at Auckland to move the company into liquidation.

Mr Whimp’s first report reveals $1.47 million is owed to secured creditors with general security agreements, while trade creditors are owed a total of $1.1 million. 

A four-page list of trade creditors includes Inland Revenue, former editorial staff and the Magazine Publishers Association.

According to the companies office records, Trade Publications Ltd (TPL), Ricoh and Heartland Bank are secured parties. 

Mr Whimp says the debt to TPL is about $400,000.

Mediaweb purchased all of TPL’s titles in 2011, which included Hospitality, Travel Trade, Local Government and associated titles, directories and supplements. TPL director Chauncy Stark. who is now retired, confirmed the registered security is a result of that sale in 2011. 

Heartland Bank had prompted the receivership but receiver Tony Maginess of McDonald Vague will not say just yet how much is owed to the bank. 

Mr Maginess says the focus has been on selling Mediaweb’s titles and some have been sold to date after tenders closed earlier this month.

An email leaked to NBR ONLINE reveals receivers found false accounts and misleading invoices.

It says receivers do not know to what extent invoices are false but says they were produced in the second half of 2013 and the beginning of 2014.

Mr Whimp says liquidators have a lot of work ahead of them and a number of major transactions will be looked at.

He will not be drawn on how big the transactions are but says they are “big enough for us to show some interest.”