It had reached a standoff: on one side, Tobem Holdings owed $2.7 million by insolvent childcare operator Kid Country Holdings wanted access to Kid Country’s records suspecting assets had been spirited away prior to liquidation; on the other, Kid Country liquidators Damien Grant and Adam Botterill refused access saying this was simply a challenge to their professional expertise and competence.
Justice Tahana allowed access under strict conditions.
Kid Country Holdings Ltd is a joint venture company controlled by Auckland-based David Lowry and Papamoa-based Paul and Marilyn Hamlyn with investments in childcare centres. Kid Country’s liquidation followed a dispute with Tobem Holdings Ltd as landlord of premises on Lincoln Road at Henderson in west Auckland. Kid Country was ordered to pay $2.7 million damages.
Grant and Botterill were appointed liquidators in May 2022 with the benefit of proxies given by two Kid Country creditors owed between them some $7500. The High Court was told Tobem has no confidence in the liquidators. It is particularly annoyed that it is owed nearly one hundred per cent of Kid Country’s debt but is saddled with liquidators not of its choice.
Liquidators say Kid Country has no assets. Tobem wants to know why a number of Kid Country subsidiaries running child care businesses were removed from the companies register prior to Kid Country’s liquidation. The suspicion is that these were profitable businesses removed from the orbit of Kid Country before liquidation. Tobem wants access to Kid Country’s records.
Grant and Botterill say they are open to discussions with Tobem about funding a detailed investigation. In turn, Tobem says it has no confidence in working with the liquidators. It wants to set its own investigation in train.
Justice Tahana ruled Tobem could view Kid Country documents held by the liquidators. Commercially sensitive documents are not to go to Tobem directly, but can be viewed in confidence by their investigative team.
Tobem Holdings Ltd v. Grant – High Court (30.11.23)
24.023