A Christchurch property development company has been placed into voluntary liquidation after a completed development failed to generate enough proceeds to pay all creditors.

Eversham Limited was placed into liquidation on 13 November, with Brenton Hunt of Insolvency Matters Limited appointed as liquidator.

According to the liquidator’s initial report, the company is insolvent.

The report said the company completed a property development, but the sale of the units was not sufficient to meet all creditor claims.

The director sought professional advice and decided to place the company into voluntary liquidation.

The development was a block of townhouses on Bewdley Street in Spreydon.

Inland Revenue is listed as a preferential creditor with an estimated GST claim of $390,000. Unsecured creditors are estimated at $50,000.

Eversham Limited was incorporated in May 2022. The sole shareholder and director is Christchurch Insurance and Risk specialist Kathryn Jane Pascoe.

Pascoe told chrislynchmedia.com, “this project was an isolated personal investment that unfortunately coincided with significant market shifts, a lengthy construction period and underperformance by the external development firm managing it. While the outcome was disappointing and costly for me personally, I have been able to ensure that all creditors other than IRD were fully paid.”

The liquidator said initial investigations indicate the company bank account held modest funds at the time of liquidation and the property development had been sold before liquidation.

Initial investigations do not indicate an overdrawn shareholder current account.

The liquidator has begun investigating the company’s trading history, including whether there were any insolvent transactions or transactions at undervalue in the two years prior to liquidation. The director’s actions will also be reviewed under the Companies Act 1993.

The report said it is unlikely there will be funds available for unsecured creditors, although this will depend on the progress of the liquidation.

No legal proceedings involving the company were known at the date of the report.