As the public voice to know the truth behind the enormous personal debts incurred by the organiser or event manager of the Shahrukh Khan show (‘Temptation Reloaded 2013’ held at Vector Arena in Auckland on October 4, 2013) grows louder, we asked the Liquidator currently investigating the mess for an update.
AReddy Private Limited was incorporated under the Companies Act on March 28, 2010, trading as ‘AReddy Private Limited’ and ‘Limelight Entertainment.’ Its Registered Office was listed at 3G, 27 Federal Street, Auckland City. Agastya was the sole Shareholder and Director of the Company, whose business was ‘Event Organiser’ and ‘Promoter.’
High Court Order
The Company was placed in liquidation on May 16, 2014 at 10.04 am by order of the High Court at Auckland pursuant to section 241(2) (c) of the Companies Act 1993.
The Court appointed Digby John Noyce, Chartered Accountant of RES Corporate Services Limited as Liquidator of the Company.
Following is the report we received from Mr Noyce
The Liquidator has not acted in any capacity for the Company, its Directors or Shareholders and is not prohibited from accepting the appointment under Section 280 of the Act. This Report has been prepared in accordance with section 255 of the Act based on information contained in the Company’s records and information supplied to me from the Company, its Directors and other Officers. I have not carried out an audit of the Company’s records. Accordingly, I retain the right to amend particulars if I consider it necessary in light of information, which becomes available to me after the date of this Report. The Liquidator shall not be responsible for the reliance of any person on information contained in, or derived or omitted from this Report.
Why insolvency?
Our initial investigations have revealed that the Company conducted business as an entertainment event organiser and promoter. The Company, through its trading name of ‘Limelight Entertainment’ organised the local staging of a show featuring Bollywood star Shah Rukh Khan called ‘Temptation Reloaded 2013’ at Vector Arena.
As a majority of the costs needed to be paid prior to the event, the Director sought funding by way of loans and sponsorship agreements. We have identified a number of parties who loaned or advanced monies to the Company, some of which have been repaid.
The Director has provided us with some information relating to the show, however as he has left New Zealand, we have not yet been able to formally interview him about the Company’s affairs and events leading to its liquidation.
The Director has been unable to provide us with any formal accounting records. Our investigations have revealed that the director routed Company funds through a number of other parties bank accounts including his own. The Director was adjudicated bankrupt on May 28, 2014.
The investigations
We have taken control of the Company’s bank accounts and have commenced our investigations into the trading affairs of the Company prior to our appointment. We will investigate whether the Company holds any further assets of which we are not aware. We are investigating other potential avenues for recovery, in particular those relating to the funds that were routed through third party bank accounts.
We are forensically reviewing the Company records and have identified a number of payments, which we consider may be voidable. We also intend to examine if any insolvent transactions have occurred, and if there have been any breaches of legislation, as contemplated by Section 136, 194 and 258A, of the Act, by the Company or its officers,
Should any creditors have any information on any matter that they feel warrants investigation, please advise us in writing. If any creditor believes that they have registered a Security Interest on the Personal Property Securities Register (PPSR) over any goods or proceeds from the realisation of those goods, and they have not been in contact, please do so immediately.
Editor’s Note: The above is only a part of the Report that Digby Noyce sent to us. Creditors and others with relevant and credible information may contact him at his office located at Building D, 42 Tawa Drive, Albany, Auckland 0752. Phone (09) 2805900; Fax (09) 4430537;
Email: insolvency@rescorporate.co.nz
