Company no

COMPANY NO. 507087

LIQUIDATORS FIRST REPORT
Section 255 of the Companies Act 1993
RUAHINE TRADING LIMITED (IN LIQUIDATION)
Formerly Trading as Norsewear of New Zealand Limited

Was placed in liquidation on 29 January 2008 at 8.00am pursuant by special resolution of
the shareholders and Iain Bruce Shephard and Christine Margaret Dunphy were appointed
liquidators.
The liquidators take no reasonability for any misinformation contained in this report that has
been supplied by the company, its officers or other persons.
1.
COMPANY INFORMATION
BACKGROUND
Norsewear of New Zealand Limited (“Norsewear”) manufactured and distributed (both retail and wholesale), the iconic Norsewear brand of woollen garments from premises in Petone, and manufacturing operations in Norsewood and Wanganui. In 2004 there was a significant change in shareholding. The new shareholders initiated a restructuring programme which included rationalising product lines and streamlining manufacturing operations. The company underwent restructuring and diversification of its staff and facilities including opening a chain of retail outlets to counter a declining trend in sales through its traditional resellers. The company suffered from ongoing losses in its manufacturing and wholesale distribution businesses which were not halted by these measures. These losses were occasioned by intensifying competition in manufacturing, on-going difficulty in scheduling manufacturing efficiently, and consolidation in its traditional rural reseller markets. Finally the board decided that an orderly sell-down of the company’s three main operating units (wholesale, retail and manufacturing) would be the best course of action to maximise value, ensure the continuance of the brand, save jobs where possible and settle all creditors. With the disposal of these assets almost complete it became apparent that there may be a shortfall to creditors. The directors sought professional advice and as the company was considered to be insolvent, the shareholders placed the company in liquidation. PROPOSALS FOR CONDUCTING THE LIQUIDATION
Set out below is a summary of our proposals for conducting the liquidation. The liquidators will consider with reference to the records of the company; or any other information received: Whether the directors and officers have acted properly in the operation of the company’s business. Whether proper records have been kept by the company. Whether all of the company’s property has been accounted for. Whether any creditors of the company have received any preferential treatment. Whether there have been any voidable transactions; and will undertake any appropriate action arising as a result of those considerations and; will establish the financial position of the company as at 29 January 2008, the date the liquidation of the company commenced, by calling for creditor’s claims; and will realise all assets of the company and distribute the proceeds in accordance with the statutory priorities. STATEMENT OF POSITION
The liquidators have prepared an Estimated Statement of Position that reflects the position of the company as at the date of liquidation. We attach a copy. It should be noted that no provision has been made for a potential liability arising from ERA proceedings underway. It would appear, based on the current information provided, that the creditors may receive a distribution, the quantum of which is unknown at this time. MEETING OF CREDITORS
A liquidator may call a meeting of creditors in order to decide whether an application should be made to the Court to appoint a replacement liquidator. Having regard to the assets and liabilities of the company, the likely result of the liquidation and other relevant matters, the liquidator considers in accordance with Section 245 of the Companies Act 1993, a meeting will not be called unless, within 10 working days after receiving this notice, a creditor gives notice in writing to the liquidator requiring a meeting to be called. In accordance with Section 314 of the Companies Act 1993 a creditor or shareholder may request the liquidator to call a meeting of creditors or shareholders at any time in the course of the liquidation to vote on a proposal that a Liquidation Committee be appointed to act with the liquidator. This request must be in writing. The liquidator may decline a request by a creditor or a shareholder to call a meeting on the ground that: the request is frivolous or vexatious; or the request was not made in good faith; or the costs of calling the meeting would be out of proportion to the value of the company’s assets. The decision to decline a request may be reviewed by the Court on the application of any creditor or shareholder. CREDITOR’S CLAIM FORM
Please find enclosed a Creditor’s Claim form. Creditors should complete and return this form to the above address. Should you be of the opinion that you hold an enforceable claim for goods sold by you to the company, subject to reservation of title, this should be noted where appropriate on the form and advised to us immediately. ESTIMATED DATE OF COMPLETION
It is not practicable to estimate the date of completion of the liquidation at this stage.
CHRIS DUNPHY
Liquidator

Dated: 31 January 200
RUAHINE TRADING LIMITED (IN LIQUIDATION)
Estimated Statement of Financial Position Estimated
Assets
Secured Creditor
Preferential Creditors
Unsecured Creditors
Estimated Shortfall to Unsecured Creditors
The information in this statement has been supplied by the company and the officers of the company. NO AUDIT HAS BEEN CONDUCTED. Shephard Dunphy Limited, its principals and staff, accept no liability for the accuracy of the information RUAHINE TRADING LTD (IN LIQUIDATION) Formerly Trading as Norsewear NZ
Address1
Address2
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Source: http://www.shepharddunphy.co.nz/sites/default/files/pdfs/Ruahine%20Trading%20Limited.pdf