A Business Canterbury board member’s company has gone into liquidation owing an estimated $825,000.

Grant Walker, who sits on the board of the Business Canterbury, is the director of Central Business Admin Limited, which was placed into liquidation on 14 October.

The Christchurch-based company, formerly known as 2BC Holdings Limited and trading as 2B Connected NZ, operated an outsourced call centre from its Riccarton office before ceasing trading on 31 July.

Liquidator Brenton Hunt of Insolvency Matters Limited said the company became insolvent after one of its major clients went into liquidation, putting severe pressure on cash flow.

According to the liquidator’s initial report, staff were terminated and company assets were sold to pay secured creditors and staff holiday pay, but the proceeds were not enough to cover all debts.

Inland Revenue is listed as a preferential creditor owed around $75,000 for GST and PAYE, while unsecured creditors are owed about $750,000. Hunt said it was “unlikely” there would be any funds available for unsecured creditors once the liquidation is completed.

Investigations are underway into the sale of assets before liquidation and whether any insolvent transactions or breaches of the Companies Act 1993 occurred in the two years before the collapse.

Central Business Admin was incorporated in April 2018 and is associated with 2B Connected Limited, Edgeai Limited, and Abundance Group Limited.

A statement of affairs attached to the report shows no assets available for distribution to unsecured creditors. The liquidation is expected to take up to 12 months to complete.

Creditors have until 21 November to lodge their claims with the liquidator.