The Hutt-Mana Charitable Trust says it lost $1.655 million as a result of the liquidation of its wholly owned home insulation company EnergySmart.
EnergySmart was put into liquidation in September 2011 by the trust’s subsidiary company Hutt Mana Holdings Ltd due to mounting trading losses.
Liquidators Shephard Dunphy later sold EnergySmart to Christchurch company Terra Lana Products for an undisclosed amount.
At the time trust chairman Ian Hutchings said the trust’s losses - believed to be over $2 million - would be documented in its annual accounts for the year ending June 30, 2011.
However the accounts were delayed by difficulty in obtaining accurate information about Energy Smart and problems in satisfying audit requirements. They were finally signed off on March 30, 2012, or nine months after the end of the financial year to which they relate.
The accounts reveal an ‘impairment’ to the trust of $1,655,363 resulting from the EnergySmart liquidation. In notes to the accounts the trust’s auditors note that the liquidation process is still ongoing and there is uncertainty about the recovery of certain assets within the EnergySmart Group. “The trustees have received a report from the liquidators confirming that all unsecured creditors (including the trust) are likely to receive 40 cents in the $ of their outstanding debt. Up to the date of the signing of these accounts unsecured creditors have received 25 cents in the dollar and the trustees believe that 40 cents in the $ is a highly likely final outcome.”
The trust also leant its subsidiary company Hutt Mana Holdings $2.883 million at an interest rate of 5% to buy a building at 40-42 Railway Ave, Lower Hutt, to serve as the headquarters for EnergySmart. The building was subsequently sold for $1.25 million.
The trust and its associated companies lost $2.3 million in the year to June 30, 2011. However, the trust was still able to make grants to the community and for energy efficiency projects worth almost $1 million.
Mr Hutchings declined to comment on the accounts, saying he will address the accounts in his annual report. That will be presented at the trust’s annual meeting to be held on May 17, at the Helen Smith Room, Pataka, Porirua starting at 5.30pm.
The positions of chairman and deputy chair – currently held by Prue Lamason – will be up for re-election at the meeting. Mr Hutchings says he intends to offer himself for re-election.
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