A number of Northland trucking firms will loose money after the collapse of Smith and Davies (NZ) and HarvestPro New Zealand, both companies being 100% owned subsidiaries of Kiwi Forestry International.
According to the Northern Advocate, all 120 staff of Smith and Davies (NZ) in Whangarei were terminated on March 16.
Seven Northland trucking firms are owed more than $192,000 and are part of a group of non-secured creditors who are owed $1.7 million by the two logging companies.
The directors of HarvestPro and Smith and Davies have proposed to pay non-secured creditors 20 cents for every one dollar of debt as final settlement.
One Whangarei truck-owner Dave Sills told the Northern Advocate that he was owed more than $29,000 by Smith and Davies, but will only receive $5862 if he agrees to the company’s proposal.
The two companies owe secured creditors GE Finance, Mercedes-Benz Financial, and Itochu
Corporation $24.9 million.
Both GE Finance and Mercedes-Benz Financial repossessed assets of HarvestPro New Zealand as well as Smith and Davies NZ but have yet to determine the amount they have recovered says the Northern Advocate.
