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Businesses linked to a troubled civil construction company owe more than $19 million - mostly to BNZ - according to the first receivers report.
RMS Contracting and related entities TW Group and TW Civil were placed in receivership in November last year.
TW Group was the ultimate shareholding company, owned by Fred Witton and Ross Troughton, who were also the directors, and had a registered office in Hamilton.
Andrew McKay and Rees Logan of BDO were appointed joint and several receivers and managers of the companies.
BDO said following a construction industry downturn, the companies' work dried up, made worse by the fact they bought a large amount of equipment and machinery on finance.
"With cash flow constraints and low utilisation of a significant amount of equipment and machinery, the companies were reliant on the ongoing support of the bank (BNZ) to continue trading," BDO said.
It said the directors asked the bank to appoint receivers to the companies.
The BDO report showed TW Civil had almost $12.2m in liabilities, with $11.4m owed to BNZ.
RMS Contracting had just over $6m in liabilities, with about $1.6m owed to BNZ.
TW Group had $982,000 in liabilities, which was an unsecured loan from shareholders.
The entities also owed $526,000 to Inland Revenue in payroll and GST taxes and $217,000 to staff in unpaid holiday pay.
BDO said the companies' primary assets included civil machinery and motor vehicles, and the receivers were collecting the assets to sell.
The assets would likely be placed on the market in the next two months, but BDO did not disclose the value of specific assets in order to obtain the best price.
