Auckland’s Vehicle Direct placed in liquidation and owes millions
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Auckland used car dealership Vehicle Direct and two associated companies have gone to the wall. Creditors are owed more than $5.7 million.
The three companies are Vehicle Direct Ltd, Auto Trading Ltd and Auto Compliance & Repairs Ltd. They were all placed into liquidation on September 4 by special resolution of the shareholder, director Muhammad Waseem.
Westpac New Zealand is the largest secured creditor, with claims of just over $3.1m across the three businesses. Other secured lenders include Bizcap NZ and Heartland Bank, EFCO, Go Car Finance and Ishfaq Bhatti Ltd (MTF Finance).
According to the liquidator’s report, the companies faced an inability to recover costs and lliabilities because of “challenging economic conditions.” Rising operating costs, increased competition, and a lack of sales left the dealership without sufficient working capital to continue trading.
Vehicle Direct operated from Great South Rd in Otahuhu, while Auto Trading Ltd imported and wholesaled vehicles. Auto Compliance & Repairs Ltd provided repair and compliance services.
Alongside secured creditors, Inland Revenue is owed $427,564 by Vehicle Direct, $114,824 by Auto Trading, and $285,537 by Auto Compliance & Repairs. Employee entitlements across the group total more than $280,000. Unsecured creditors are collectively owed over $1.4m.
The liquidator confirmed that the companies are party to pending legal proceedings. Assets such as stock and fixed property are under security agreements and have yet to be valued.
Further investigations into the affairs of the companies will follow.
