Major New Zealand apple grower and exporter Kiwi Crunch Orchards Ltd may have traded while insolvent at times, according to its first liquidators’ report, as the company’s collapse leaves creditors facing a multimillion-dollar shortfall.
According to a report by Stuff, Kiwi Crunch Orchards and several related companies entered voluntary administration in July before moving into receivership and liquidation. The group managed about 450 hectares of orchards across Hawke’s Bay and Central Otago.
The companies involved include Kiwi Crunch Hawke’s Bay, Kiwi Crunch Exports, Kiwi Crunch Farms, Kiwi Crunch Nurseries and KC IP. Kiwi Crunch Hawke’s Bay was also the sole shareholder of Crasborn Fresh Harvest Ltd, which was placed into liquidation last month over $19.9 million in unpaid tax and penalties owed to Inland Revenue, Stuff has reported.
According to the liquidators’ report prepared by Ecovis, Kiwi Crunch Orchards had assets worth $38.8 million against liabilities of $60.5 million, creating a shortfall of $21.7 million.
The report said creditors had expressed dissatisfaction with how the company was managed.
“It became clear to the liquidators through the voluntary administration process that there is generally a feeling of dissatisfaction among creditors around the manner in which the company was managed,” the report stated.
“However, to date, no concrete evidence of significant corporate malfeasance has been presented but should any such evidence be presented, the liquidators will investigate all allegations,” as quoted by Stuff.
The liquidators said the company’s inability to meet its financial commitments raised concerns about its solvency in previous periods.
“The fact that the company has not been able to honour all its commitments to its creditors as they have fallen due would indicate that it may well have traded insolvently at times in the past,” the report said.
Further investigations will be carried out, with findings to be reported to the Registrar of Companies where necessary.
“The liquidators will pursue appropriate action against the directors to the extent considered economically beneficial if evidence exists to support such action,” as quoted by Stuff.
A separate report from KPMG into Crasborn Fresh Harvest showed the company had assets of $40 million and liabilities of $53.6 million.
According to Stuff, Inland Revenue was owed $19.9 million, while 44 unsecured creditors were owed about $30 million. A further 42 secured creditors were owed $3.4 million.
Crasborn operated Kiwi Crunch’s Hawke’s Bay packhouse and cool-store facilities, owned plant and equipment and employed workers across the group.
The report said sole director Wade Glass told liquidators the company’s financial problems began after its acquisition in September 2022. Cyclone Gabrielle then significantly affected operations just five months later, as reported by Stuff.
The wider Kiwi Crunch group is now under the control of receivers Calibre Partners, appointed by ASB Bank.
Meanwhile, five Kiwi Crunch orchards in Hawke’s Bay are being marketed for sale or lease individually or as a portfolio, with tenders closing on Thursday, Stuff has reported.