Auckland-based Absolute Traffic Solutions went into liquidation, leaving 85 traffic management workers unemployed.
The company provided various services, such as traffic management and worksite protection, and had been operating for more than 17 years.
The initial liquidator’s report, prepared by Digby Noyce of RES Corporate Services, revealed the company had debts of approximately $1.58 million, with $1.1 million owed to Inland Revenue.
85 employees were working at the company on the liquidation date, but all employment contracts ended when the liquidator was appointed. The report states that employees are owed approximately $452,000 in entitlements.
The report also said the company was unable to meet its obligations to Inland Revenue but had temporarily adhered to a payment arrangement with them. After the company missed a payment under the arrangement, Inland Revenue issued a statutory demand, prompting the shareholders to decide to liquidate the company.
The company’s assets comprise transport management vehicles, traffic equipment, signage, and various plants and equipment.
At the time of liquidation, the company had a cash balance of $150,355.
The liquidators plan to sell the business to reduce losses caused by the vendor’s warranty breaches.
An investigation will also be conducted to identify any other available assets and explore potential recovery options. It will also investigate whether any insolvent transactions have taken place and if the company or its officers have violated any laws.