8 Jun 2012

Pursuit of broke businessman considered

1:57 pm on 8 June 2012

A liquidator is considering whether to pursue an English businessman who left his Christchurch demolition company with debts that could reach $1 million.

Skelly Holdings, which was run by Chris Skelly, operated two demolition dumps and a recycling plant.

Liquidator Murray Allott says the business model was flawed, with the company incurring weekly costs of $40,000 while only making about $5000 in recyclable material.

Mr Allott says he expects the shortfall between what creditors are owed and the assets available to reach $1 million.

He says Mr Skelly has left the country and he's deciding whether to pursue him for the debt recovery.

Dump clean-up cost not known

The dump site is owned by KiwiRail, which is yet to determine how much the clean-up will cost.

Skelly Holdings also lacked the necessary consents for parts of its operation.

KiwiRail says although it took steps to get the company to comply with the lease agreement, it did not fufill its obligations.

KiwiRail says it has now no choice but to accept responsibility for the site and will clean-up the material in the coming weeks.