Liquidated
on the assumption it had no assets, a Texan-owned company was resuscitated by
the High Court so beneficiaries of the late owner’s estate could recover over
$10 million in royalties flowing from the Kupe gas field in Taranaki.
JFP (NZ) International Ltd was put into
liquidation in 2011 sixteen years after the death of its owner, Texan Marvin
Lee Smith. The company provided
off-shore drilling services for the oil industry and held a part interest in
Origin Energy’s Kupe drilling prospect.
At the time of liquidation, JFP had accumulated tax losses of $7.6
million. It had no liabilities other
than loans from its parent company. The
court was told JFP was put into liquidation one year after a new gas stream was
commissioned in the Kupe field. Executors
of Mr Smith’s estate were then not aware of any royalties payable by Origin
Energy.
The High Court restored JFP (NZ) to the company
register and cancelled the earlier liquidation.
The company is required to pay companies office fees for the intervening
years and to obtain an IRD number.
Re
JFP (NZ) International – High Court (19.05.16)
16.083