A major player in the Government’s home insulation scheme has been put into liquidation by the directors of the Hutt Mana Charitable Trust – a registered charity with the Charities Commission, leaving a trail of more than $1.6 million in outstanding bills.
Three limited liability companies that are charities registered with the Charities Commission, were put into liquidation on 19 September 2011: EnergySmart Ltd, EnergySmart Distributors Ltd and EnergySmart Retrofitting Ltd. They are service providers involved in the supply of subsidised home insulation and heating and because they are registered with the EECA (Energy Efficienct Conservation Authority), they can access sizeable government subsidies.
EnergySmart Ltd, a Wellington-based company, recorded a $13.648 M gross income in the last financial year (ending 31/12/10) and of this, $2.715 M was spent on salaries and related expenses. Its recorded total liability for the financial year ending 31 December 2010, as recorded on the Charities Commission website, was $4,631,147. A net deficit of $821,018 was recorded for income over expenditure.
The Liquidators have estimated that once all the value of all Energy Smart’s assets have been realised, it will still have a shortfall of at least $1,634,335 – money owed to its creditors (largely suppliers of insulation product). However, this is clearly a very conservative estimate of its total debt and does not take account of any debt claims by unsecured creditors. [Read more...]