Creditors could be out of pocket by nearly $8 million following the placing in liquidation of NZ Wagyu late last month.
In his first report, liquidator Brenton Hunt of Insolvency Matters says Christchurch-based NZ Wagyu owes 142 secured and unsecured creditors an estimated $10.4m but the initial estimate following the liquidation of assets is that there will be a shortfall to all creditors of $7.774m.
The list of 131 unsecured creditors consists of mainly farmers, transport companies, contractors, stock feed suppliers and rural servicing business.
The 11 secured creditors are financers and some suppliers.
Staff are owed wages and holiday pay of $189,000 and Inland Revenue $915,000.
NZ Wagyu was incorporated in March 2019 by its sole shareholder and director, Arato Tsujino, to rear, graze and finish cattle under traditional wagyu techniques.
Hunt’s report says Tsujino contracted services for stock but the stock was owned by his main customer, who is in Japan
In recent years NZ Wagyu advanced funds to related companies to invest in businesses to process and sell wagyu products and ensure a secure supply chain.
“This included trading operations such as building large farming sheds, rearing of calves, abattoir, butchery, commercial kitchen, jerky business and investment into some hospitality businesses.”
Hunt says NZ Wagyu was hit hard by the restrictions associated with the covid pandemic and the subsequent increase in farming and construction costs.
The current recession and weak international market, especially in China, have also had an impact.
“From approximately March 2024 onwards, NZ Wagyu Co Limited fell into substantial arrears with farmers and suppliers despite receiving prepayment of all farmers’ and suppliers’ costs from the owner of the stock.
“As a result of discovering these discrepancies, the owner of the stock ceased further payments to New Zealand Wagyu Co Limited and determined instead to pay farmers and suppliers directly from 1 June 2024.”
The list of assets includes some funds in a bank account, land at Timaru, plant and equipment and motor vehicles, although a number with sizeable amounts of finance owing on them.
The company was placed in liquidation on June 28 by shareholders after it became insolvent.
