Receivers bump up second payment to redundant LWR staff

Monday 20th July 2009

Stephen Tubbs and Brian Mayo-Smith, partners of BDO Spicers and the receivers of Lane Walker Rudkin, ramped up the second round of secured payments to LWR staff laid off in April as they accumulated money from “day-to-day trading.”

Around 55% of total employee preferential entitlements, which include outstanding holiday pay and redundancy claims, have been paid to staff, a big jump from the 10% paid in the first round of payments, which were in the form of scheduled wages.

“At the time the redundancies were made, LWR did not have cash reserves available to meet any significant proportion of the outstanding entitlements,” the receivers said in a statement. “Further payments will be made as soon as the cash position of the group allows them.”

The Christchurch-based manufacturer that traces its origins back to the 1880s was placed into receivership by its bank on April 28 amid mounting debts, and laid off around 180 of it 470-strong workforce. It ring-fenced its Pod group operations, which remained “profitable and cash positive”.

LWR is owned by Christchurch businessman Ken Anderson, who acquired the company in 2001 and the Pod group of textile, clothing and homewares in 2007.

LWR paid $22.5 million for Pod, then listed on the NZX. Redundant employees are treated as preferential creditors up to a gross limit of $16,420 each, with any further claims classified as unsecure.

Businesswire.co.nz

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