A food service provider serving the education sector announced its liquidation last week; liquidators have disclosed how much it owed.
Libelle Group, a key supplier of the government’s free school lunch programme, owes over $14 million to hundreds of creditors. liquidators Robert Campbell and David Webb of Deloitte said.
Libelle Group’s debt revealed:
- $2.38 million to preferential creditors, which includes both its staff and the Inland Revenue.
- $8.37 million to secured creditors, who have the legal right to seize and sell the company’s assets if payments are not made.
- $3.58 million to unsecured creditors, who lack the legal right to seize or sell the company’s assets in the event of missed payments.
The report identified 248 creditors, including schools, utility companies, and food and packaging suppliers. However, it did not provide information on when or if these creditors would receive their owed amounts. Also, some of the amounts owed to creditors were still pending verification.
The liquidators did not reveal the total value of Libelle’s assets, which include vehicles, equipment, and inventory. They also did not specify when or why Libelle Group encountered financial difficulties, except that it exhausted its funds after paying staff wages on March 6.
At the time of Libelle Group’s liquidation, it was disclosed that the company had substantial outstanding debts to creditors, critical suppliers were on the verge of halting deliveries or reclaiming leased assets, and every business unit was operating at a financial loss.
Liquidators Campbell and Webb said they will “undertake an investigation into the affairs of the company, though, at this stage, we do not know whether this will disclose any other reasons for liquidation.”
Libelle Group had a contract with Compass Group, a global catering company, to provide around 125,000 meals each day as part of the government-funded Ka Ora, Ka Ako Healthy School Lunches initiative.
The liquidators said they have quickly worked with Compass to ensure that the service continued without interruption.
Compass Group’s head, Paul Harvey, emphasised that his primary focus is ensuring that the students continue to receive nutritious meals daily through the programme.
Meanwhile, the associate education minister David Seymour said, “We’re now focused on the future and making sure the programme runs smoothly.”