Nosh Group in receivership

Waterstone Insolvency's Damien Grant was appointed as a receiver for Nosh Group

Receivers have been appointed to troubled grocery chain Nosh Group and sister company Mt Eden Food Company.

Companies Office records show Damien Grant and Steven Khov of Waterstone Insolvency were appointed this afternoon under a general security agreement dated April 13.

Staff have told NBR they have not been paid since June 14 and suppliers are understood to be owed about $3.3 million.

Mr Grant was not immediately available for comment and neither was Nosh Group’s sole director, Andrew Phillips.

Nosh Group is owned by Agri Trust Limited Partnership, whose general partner is a company directed by former bankrupt John Denize.

The shareholding of its subsidiary Mt Eden Food Company was changed two days ago by Mr Denize to the ownership of Agri Trust.

Company records show a general security agreement over all Mt Eden Food Co’s property is held by Mr Phillips personally.

It is not clear what assets remain to realise. All Nosh company-owned stores are closed and most of the stock has been sold.

The first receiver’s report is due on September 21.

The Nosh chain was acquired by Agri Trust in February from a subsidiary of NZX-listed Veritas Investments, since renamed Old NGL.

An application to put Old NGL into liquidation, sought by wine supplier Eurovintage, was withdrawn at the High Court this morning.

Read Tim Hunter's backgrounder to the Veritas-Nosh debacle here.

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Damien Grant, the saviour of secured creditors.

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The Nosh haiku....

Cash deficiency?

Oh gosh. Are you sure? Best not

tell the A. N. Z.

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Haikus! I love haikus!

Clowns and fools run riot
At the circus called Nosh Foods
Mad Butcher is next

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Well fellow haiku lover - here's the follow up!

What a shambles, eh
Veritas may be next for
the old chopping block?

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Paper Tiger called - he wants his haiku's back...

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I can do limericks as well Moosie - this one for anyone considering a purchase of Veritas shares.....

A gambler enticed by the chance
Of a win does a dangerous dance:
He savors the thrill,
As he loses free will.
We all know how it ends in advance.

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Where are the authorities on this

It all appears like one big rort - approved and sponsored by Veritas and ANZ Bank to get them out of a whole and to load debt on the creditors
Once again the small guy gets screwed

This restructure only lasted a few months and let Veritas off the hook.

(Edited)

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Thank god there's a govt watchdog out there to keep an eye on these companies.... ah hang on.

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I agree this needs to be investigated. The Veritas chairman has claimed he saw documents that showed they have money etc.

Questions

(1) if they are solid and legit then there has to be action against those that have not fronted.

(2) The docs were fill of holes, in which case the Chairman has been a little light on disclosure and ended up supporting a very marginal transaction.

(3) The docs look solid but were not legit. Then there is an issue of fraudulent use of a document.

But someone has to be accountable. Personally think regardless of who the Veritas chairman should step down.

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Tim give me a call re my position and comments re my Nosh store kerikeri

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Caveat Emptor. Follow the money. With this deal it led down a rabbit hole to a kind of Wonderland. Examine risk in terms of probability & consequence. Do your homework as losing your hard-earned dosh is such a drag.

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These people do not care about staff .who could do this to people.?

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Good to see NZ hasn't completely shed its image of being the WIld West when it comes to shady business deals.
When all the subsidiaries where transferred earlier in the week to Agri prior to the receivership it is clear this is just a deliberate insolvency to dispense with unsecured creditors and keep whatever assets remain under control.
One wonders when the government will wake up to the need to have regulation on who can be insolvency providers.
Whatever due diligence Veritas did on the purchaser was a complete joke. They never had any intention to pay the debts that were supposedly transferred.

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Very fishy as to why a company very recently brought has gone into receivership very shortly after acquisition. I guess the writing was on the wall when the wages weren't paid and the rents weren't paid . No amount of resuscitation will revive the Nosh business now . Realise what very little assets there are and move on.

I agree the receivers should also carry out an investigation into the acquisition of Gosh Ltd that purchased off Veritas.

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This is a timely reminder for shareholders to do their due diligence, not only on a company, but also the directors involved. This is going to bankruptcy numero tres for Mr Denize.

Have fun with this Damien!

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Just having a look at some of the directors out there now, is scary to say the least. I wonder if people know that many of the directors of failed finance companies are still out there.... and still on many boards of companies.

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The more well-versed of us who do our homework have blacklists (and there are many names on it...), a company of which we would never touch if an individual appeared on the entities directors list. Unfortunately, the vast majority of the investing public are not so aware.

Caveat emptor applies, especially since when you buy into a business, you also buy the management that goes with it!

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What you say about the management comes with it is only too true, and people need to be very careful, because if it all goes wrong they, the management just walk away from it.

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I see Graeme Jackson ex Strategic Finance is involved via a company that is a shareholder in Veritas

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Ivan, who are these directors?

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Well there's one that used his well known name to entice millions of people to invest in the very company that "The Scribe' mentions above. Only one problem, he was a Rugby God, and Rugby Gods cannot be talked about. I will tell you his name, and we will see if it's posted.....Jock Hobbs. (Edited)

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Tony, they are people that are protected. The proof of some of it was going to be an my comments below, but at the end of it you will see the word (Edited) Meaning much of it was cut out (as expected). A better question for you to have asked would be, why are these people protected, because it's a question that I for one would like to have answered. It must be remembered that over $3 billion of peoples saving were lost in these finance company collapses, and only a very small amount of it has ever been repaid. I know what I'm talking about because I have been involved in 6 different receivership's since 2007.

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Jock Hobbs is no longer with us so let's not speak ill of him. I doubt NBR will edit a factual list from you.

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He died, so we'll just forget about it then, and you are totally wrong about whether NBR will post a list about past and current finance company directors that are still on the scene. Maybe your first sentence goes on the explain one reason why these people are protected? Plus let's not forget the Rugby thing.

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I completely agree with you Ivan but don't believe in speaking ill of the deceased. I'm an elderly fuddy duddy like that but also lost money with these so called directors. Especially so when so many of them still are alive, well and sipping champagne while still having their snouts in the trough. Meanwhile many people I know lost their savings and can barely afford milk.

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The saddest thing about one of them, is that the investors actually voted for the change, and then went on to lose everything. I'm talking Hanover here. I still can't believe that they voted for that deal. Plus everyone of the directors responsible for it is still out there operating as we speak. One of them is in the news nearly everyday with his League team, carrying on as if the whole affair never happened.

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As i understand it the purchaser bought the business and agreed to pay the creditors. If the creditors didn't agree to that, their debts are still payable by the vendor, Old NGL. If Old NGL didn't have the money to pay the debts then the liability doesn't flow back to the parent, Veritas. Therefore the directors of Old NGL are potentially still on the hook for this.

I wonder how the Veritas chairman is feeling right now.

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I know the 'bed-head' look is all the go these days. but Damien, honestly......

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Allow a bunch of investment bankers to take charge of a profitable business like the Mad Butcher and watch them go on an orgy of deal makings and deal doings.

Ably assisted by the ever willing ANZ bank.

Lovely fees and great ego boosts for all save the profitable business - that's the story of Veritas.

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There's nothing so fun as playing with other people's money then taking your cut off the top.

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It was an "Uh-ohh" moment when I saw what was going up on what was once Rosie Horton's property on Vicky Ave. I figured, that anyone who was building that, must have an ego the size of Texas,. And any shaeholder associated with the owner's business -- it would inevitably end in tears.

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And then economists and commentators (and our government) wonder why people invest in property as opposed to companies !
One only has to look at Wild West NZ and realise property is a safer bet than investing with these rogue entities.

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If anyone half their salt did a quarter of the required due diligence and homework they'd realise they could easily make multiple bags more than real estate gains ever would, at one-tenth the hassle!

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Agreed - the same sorry excuse which comes out everytime there is a corporate failure, totaling ignoring the spectacular gains made by investors in solid stocks like Auckland Airport, Ports of Tauranga, Trustpower, Fletcher Building, Sky City and the lists go on and on and on.

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Are veritas still going to sue, what a fiasco the whole situation has been. Will anyone be held accountable a former bankrupt fronting the deal what sort of backhander were veritas paying him.

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