Court puts brakes on towing company
An Auckland towing company is put into liquidation as creditors are strongly advised to meet soon with liquidators.
Auckland-based towing and breakdown service Vehicle Recovery Group 2006 has been placed in liquidation.
This follows the company's application in February to liquidate after internal ructions between shareholders.
Paul Sargison and Simon Dalton were appointed liquidators by Associate Judge Roger Bell at the Auckland High Court today.
Bruce Pamatatau, a lawyer for majority shareholder and director Sandra Mary Fraser and former director Craig Burrows, said today was the first he had heard of who would be appointed liquidator.
"My clients would prefer a different liquidator ... but I accept this," Mr Pamatatau said. "I don't have a leg to stand on to persuade you otherwise."
"Sargison and Dalton are recognised insolvency specialists," Associate Judge Bell reassured him.
He strongly recommended an initial meeting between the creditors and liquidators take place as soon as possible.
"Liquidations can get very messy when shareholders fall out," he said. "Costs [of liquidation] can go up enormously because disputes can increase.
"Problems can be reduced if everyone meets at the outset," Associate Judge Bell said.
Blair Cunningham
Thu, 28 Jun 2012
Thu, 28 Jun 2012
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Court puts brakes on towing company
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