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Paramount Homes Limited (In Liquidation)

Published: Mon 17 Nov 2003 11:45 PM
Paramount Homes Limited (In Liquidation)
Liquidators Return Money to Unsecured Creditors of Paramount Homes Limited
Insolvency specialists McDonald Vague have announced a payout of 20 cents in the dollar to unsecured creditors of Paramount Homes Limited, which went into liquidation on 5th November 2002.
About 30 properties, mainly in West Auckland, were under construction by the company at the time of liquidation, and were unfinished at that time. These included homes where the commissioning party owned the land, and homes where Paramount owned the land and were developing the sites.
The liquidators sold sections owned by the company, settled with some owners, and completed some contracts during the past twelve months.
Liquidator Graeme McDonald says:
"We have collected about $1 million in the past 12 months, and are therefore able to pay out 20 cents in the dollar to unsecured creditors. Clearly, in a liquidation, that's a very successful outcome. Still further money may be paid out as the liquidation progresses."
Secured creditors have been paid in full.
Mr McDonald said that at the time of liquidation, there was about $2.7 million owing to unsecured creditors. A key issue was that the company did not have the capital base to support developments it had undertaken, and they had underquoted on construction costs.
McDonald Vague was established in 1989 as New Zealand's first specialised insolvency practice. It remains one of the largest national practices focused solely on insolvency and business recovery in New Zealand. It is a veteran of many construction insolvencies.

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