Forum Archive Index - September 2002

["Michael Phillips" <michael.p@paradise.net.nz>]

From: "kentfamily"

> As I understand it, you have no obligations to the company hence
> a limited liability company.  In the (unlikely) event that their were
> proceeds left over after paying all secured and unsecured creditors
> you would be entitled to a pro rata payment.

Thanks for your response Gregory.

I was not worried about my obligations to creditors as
Seafresh haven't paid a dividend in yonks and even if they had, they
would have needed to be in breach of the solvency test at the time of
setting the dividend for the dividend to come under pressure.  I was
more curious as to whether I needed to contact someone.  I suspect not.

I have been in touch with the NZSE by email today, and they are
forwarding me a first copy of the liquidators report by
mail...unfortunately they weren't provided with an electronic media
version.  This is probably only about the second time I've emailed
info@nzse.co.nz and both times I have found their level of assistance to
be top notch.

What little information I've managed to dredge up off www.stuff.co.nz to
date suggests that liabilities exceed assets...therefore there is
unlikely to be any residual value left in the company for stakeholders
once obligations are met.

As I understand it, one of the main distinctions between the role of
liquidator and receiver is that receivers generally ascertain whether
there is a chance of the company continuing as a going concern before
making the decision to move to liquidation.  Once the decision to move
to liquidation is made, the role of the liquidator is to turn the assets
into cash in as timely a fashion as possible...this "fire sale" approach
often means that assets are sold at a value below what the market would
normally pay.  Because SFH has gone into liquidation rather than
receivership, I don't hold out too much hope of them realising maximum
rates for the assets.

Still even with all this doom and gloom, I am determined to turn this
into an educational process at the very least.  I have already learnt
that penny stocks can be penny stocks for a very good reason.

Regards
Michael
===




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