The first receiver reports into collapsed labour hire group ELE show it owes creditors more than $12m across its five companies.
Around 1000 workers were out of jobs when the group went under just before Christmas and today's reports showed the workers were collectively owed more than $4m.
Separate reports have been prepared by Deloitte into each of the five companies that were placed in receivership: ELE Management, ELE Limited, ELE Holdings, Tranzport Solutions and RISQ New Zealand.
Owing the most to creditors appeared to be ELE Limited, with creditors claims amounting to $10.9m. Of this, $4.08m was owed to former employees.
Others the company owed money to included BNZ, with a total $5.8m. But amounts owed to other creditors — including Carters Building Supplies and Placemakers — were still to be confirmed.
Tranzport Solutions had accumulated the second biggest amount of debt, close to $1m. ELE Management just behind owed its creditors more than half a million dollars — with around $511,000 owed to its employees.
The reports described how it became clear the company would experience a "liquidity shortfall" by the end of January this year.
Once it became clear that director Brent Mulholland's efforts to obtain additional funding had failed, he called in the receivers, who were appointed on December 20.
SHARE ME