Wilson Neill failure tops $15m

By Nick Stride

Friday 28th June 2002

The receivers of Wilson Neill and its six subsidiaries have so far identified debts of more than $15 million.

John Cregten and Stephen Tietjens of Corporation Finance last week filed their first reports on Wilson Neill Corporation, wireless communications company Radionet, restaurant franchise Cobb & Co and holding company South Pacific Hospitality.

They said Wilson Neill had total debt of $9.19 million, although $6.3 million of that is inter-company debt.

It was unlikely unsecured creditors would be repaid. They are attempting to negotiate a settlement with businessmen Alan Merrie and Mark Dent, directors of would-be Wilson Neill buyer Transram, over a guarantee they gave to Wilson Neill.

If that fails the receivers will start bankruptcy proceedings.

Total debt at Radionet was $2.58 million. Various offers to buy the company had been received and a sale agreement was expected "in the near future."

The receivers said they couldn't comment on secured or unsecured creditors' positions until Radionet was sold.

Cobb & Co was estimated to have total debt of $830,000. Accounts receivable were $1.2 million, all disputed.

South Pacific Hospitality has total debt of $1.18 million. Payments to unsecured creditors were unlikely.

Receivers for three other Wilson Neill subsidiaries filed reports at the end of May.

IT Media's deficit was estimated at $2 million. Unsecured creditors are unlikely to be paid.

Iguacu Ltd and Iguacu Properties, which operate a restaurant of the same name in Auckland's Parnell, have been sold. Iguacu Ltd has a list of 239 creditors. Liquidator Pricewaterhouse Coopers is investigating possible law breaches relating to Wilson Neill's collapse.

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