Storage costs are adding up, with multiple claimants disputing ownership to barrels of honey under control of Oceania Natural’s liquidator. Three people lay claim to 127 barrels; liquidator Kevin Davies is holding 101.
Justice Anderson ruled the liquidator is free to sell all 101 barrels, having a current market value of some $300,000 and use the proceeds to pay Oceania’s general creditors.
Oceania Natural Ltd has a colourful commercial history. Set up to export natural health products to consumers in China, the company listed on NZX’s then secondary board: NXT. It delisted in 2018, with director Wei Zhong subsequently fined $1.33 million for market manipulation in breach of the Financial Markets Conduct Act.
Mr Zhong now claims honey stocks under control of Oceania’s liquidator should be handed over. He claims to hold security over these assets.
The High Court was told of ‘manuka bonds’ being issued by Oceania’s finance subsidiary back in 2016 to raise working capital, with security offered over Oceania’s stocks of honey. Debt security agreements recording these arrangements were registered on the Personal Property Securities Register.
This Register provides public notice of secured claims over assets other than land.
The liquidator said no accounting records could be found linking funds raised to any security over identifiable purchases of honey. The money raised seems to have been used for general operating expenses, including salaries, he said. Any claim to status as secured creditors had not been ‘perfected,’ he added, because of a failure to specifically identify the barrels of honey supposedly secured by registered financing statements.
Mr Zhong and fellow claimants did not attend court to challenge the liquidator’s request for a ruling on ownership of honey held.
Davies v. Zhong – High Court (18.04.24)
24.096