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Potential buyers circle collapsed Canterbury bus maker


 Buyers interested in Design Line's intellectual property.

NZPA
Thu, 02 Jun 2011

Collapsed Canterbury bus maker Designline International is continuing to trade in the short-term, while buyers interested in its intellectual property circle.

The High Court at Christchurch yesterday appointed the Official Assignee as liquidator after applications by two creditors owed more than $1.8 million between them.

Christchurch accounting firm HFK has been appointed receiver. HFK acts for the secured creditor, a bank, and steps aside when the bank is paid in full and the liquidator takes over. Justice Venning earlier said Designline was clearly insolvent. While it was paying current debts it was not paying past obligations.

The court declined an appeal to adjourn the decision for two weeks while a possible sale to Malaysian interests was negotiated. It was told 500 employees were at stake and Designline's debt could be as high as $10m.

HFK is trying to maximise the value of the assets and assess if the company can be sold as a going concern.

Keiran Horne of HFK said on Radio New Zealand that there was very strong interest in the company.

Potential buyers include bus firms which were customers of the bus maker.

Designline was founded in Ashburton in 1986. It was bought in 2006 by the Glosson family of North Carolina who embarked on a large expansion setting up a factory capable of building 300 buses a year in Charlotte, North Carolina and shifting Designline to a new base at Rolleston, 20km south of Christchurch.

NZPA
Thu, 02 Jun 2011
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Potential buyers circle collapsed Canterbury bus maker
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