$20 million Wilson Neill loss?

By Nick Smith

Friday 15th February 2002

Auditors have signed off Wilson Neill Corporation's long overdue financial accounts - but at press time yesterday the renegade listed company had still not filed to the Companies' Office.

The delay may be because the losses are expected to balloon out to $20 million-plus, much worse than the $11.5 million cited two weeks ago.

Dunedin auditors Polson Higgs & Co would not comment but it is understood the accounts have been signed off.

Sources close to Wilson Neill said the company had massive losses and as more creditors filed winding-up papers in court, the full extent of its corporate delinquency would come to light.

Receiver for failed internet company Yippee, Bernard Montgomerie, said the company would report losses of more than $11 million (NBR, February 1.)

But the true figure could top $20 million, sources say.

Yippee managing director Mark Stuart has joined the long list of creditors who have filed winding up papers.

Others include advertising agency Omni Group, Progressive Enterprises subsidiary Caledonian Leasing and accounting firm Gosling Chapman.

Mr Montgomerie has abandoned legal action, saying Wilson Neill can not afford pay any fine or costs imposed by the court.

Yippee's Mr Stuart refused to comment.

But it is understood his action comes after Wilson Neill cheques for a five-figure settlement deal relating to Yippee had bounced.

DF Mainland director Stuart Cairns did not return calls but has persistently talked of a rescue package for the company.

One analyst who declined to be named said no money would be invested in the company until Mr Cairns "stabilised" the situation.

That would probably involve selling Iguacu, negotiating with Cobb & Co franchiseholders for the sale of the restaurant chain and paying what debt needed to be paid, he said.

Subsidiary companies carrying unsecured debt could be dropped, leaving a shell of a publicly listed company.

It is the shell of Wilson Neill that would retain value and attract investors, he said.

Wilson Neill also owns Iguacu restaurant, where staff cheques have bounced, Cobb & Co family restaurant chain and the crashed Flying Pig website.

Subsidiary IT Media's weekly business newspaper, NZ Business Times ceased publication last week.

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