I will save everyone from having to search,
Here it is..... Now I can see why PDF wants to marry up. Same ethics and a belief in unicorns.
GREG NINNESS15:49, Nov 14 2010
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Control one of the country's largest online exporters of New Zealand-made goods is up in the air, after it was brought out of receivership in controversial circumstances.
New Zealand Global sells a wide range of NZ-made products to customers around the world through website shopnewzealand.co.nz, but the company was put into voluntary administration last month by its major shareholder and sole director, Chris Berryman, after it struck severe financial difficulties.
However, that arrangement was shortlived. The company's only secured creditor, BNZ, placed it into receivership a few days later.
But the receivership also lasted for just a few days, after the debt to the BNZ was paid off by a Chinese company, Golden Fern Group, allowing NZ Global to return to voluntary administration.
However, some of NZ Global's creditors and minority shareholders have raised concerns about that arrangement because Golden Fern has close ties with Berryman and is also one of NZ Global's biggest debtors.
According to insolvency practitioner Gareth Hoole of Staples Rodway, who is running NZ Global's voluntary administration, NZ Global had recently sold a chunk of its business to Golden Fern for $500,000, although only $230,000 of that has been paid.
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Golden Fern advanced the money to repay the BNZ as a secured loan, which means it now ranks ahead of other creditors and shareholders in NZ Global despite its debt to the company.
Creditors and minority shareholders are particularly unhappy about the situation because of Berryman's perceived close involvement with Golden Fern, which markets a range of NZ-made infant formulas in China.
Companies Office records list Golden Fern's sole shareholder as Yunnan Ruiyang Communications Co, based in Kunming, China.
Although Berryman is not a director of the company, he filed the original shareholder consent notices when the company was established in August, giving a Kunming address.
Berryman is also listed as a director of Golden Fern Dairy, which is majority owned by Golden Fern Group.
"Certain shareholders and creditors have expressed some concerns surrounding the sale of the trade business to Golden Fern. Those concerns focus on the value of the sale and Mr Berryman's personal involvement and possible conflict of interest," Hoole said in his report to creditors last week.
However, he had concluded that the price was "fair and reasonable in the circumstances".
Hoole said Berryman and his wife had provided him with affidavits to the effect that neither of them have a financial interest in Golden Fern.
Continuation of the business under voluntary administration will be considered at a meeting of creditors on Thursday.
Hoole said he believed it was in the creditors' best interests to allow the company to continue trading, because if it was put into liquidation they would probably get nothing.
"So it's a bit of a Hobson's choice for them," he said.
Sunday Star Times
