23 June 2017

Bankruptcy: Chesterfield Preschools v. Sisson

Liquidators of Christchurch company Chesterfield Preschools will be relieved director Therese Anne Sisson has been declared bankrupt.  They have faced a frustrating saga dealing with her in attempts to wind up the company’s affairs.
Early childcare business Chesterfields Preschools Ltd ceased trading in 2004 following a tax dispute according to liquidator PwC’s first report. Eleven years later, Inland Revenue put the company into liquidation.  Company Office records show Ms Sisson became a director ten months before liquidation.  She alleges maladministration by Inland Revenue caused the company’s failure.  In a series of court applications, Chesterfield challenged both the debt claimed by Inland Revenue and the liquidation order itself.  A Court of Appeal hearing on Chesterfield’s liquidation order is imminent.
In the interim, liquidator PwC has found Ms Sisson unhelpful.  Company records have gone missing.  They were either destroyed in the Christchurch earthquakes or inadvertently thrown out by a relative during a shift, she said.
Chesterfield’s liquidators bankrupted Ms Sisson for non-payment of a $7853 court costs order unpaid following earlier litigation by her involving the company.  She challenged the bankruptcy proceeding, first by demanding that the judge hearing the application stand down from the case because she had “lost all confidence” in him, and secondly, arguing the bankruptcy application should be stayed otherwise it would prejudice the imminent Court of Appeal hearing over Chesterfield’s liquidation.
Associate judge Osborne declined her request he stand down.  The various rulings and judgments made previously, while numerous and for the most part against Ms Sisson’s position, have simply required the court to apply relevant statutes and well settled principle, he said.  There is no basis to suggest actual or apparent bias.
Bankruptcy will not impact on the pending appeal, he ruled.  Should the Court of Appeal overturn Chesterfield’s liquidation order, she still owes Chesterfield $7853 and that debt is unpaid.        
Chesterfields Preschools Ltd v. Sisson – High Court (23.06.17)

17.073