HSBC to lose millions after furniture maker's collapse
Criterion receivers warn HSBC to expect "significant shortfall" on the $8.6 million owed.
HSBC has been warned of a significant loss following the receivership of flat-pack furniture maker Criterion Manufacturing.
Criterion claims to be the largest furniture maker in Australasia, exporting to Australia, Ireland and South America.
More than100 staff were employed at the company and its subsidiary operations when it was placed in receivership on January 31.
Receivers KordaMentha’s first report reveals first-ranking security holder HSBC is owed $8.6 million but says the bank needs to expect a “significant shortfall”.
Partial payment will be made to the preferential claimants among staff owed $475,000.
No other money is expected to be available to any other creditors.
KordaMentha now have the East Tamaki, Auckland, manufacturing plant on the block and say it will go to auction, after earlier interested parties had not followed through with an offer.
Furniture stock is being cleared through other channels.
Criterion was owned by its directors Brian David Smaill and Walter John Smaill.
Georgina Bond
Mon, 02 Apr 2012
Mon, 02 Apr 2012
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HSBC to lose millions after furniture maker's collapse
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