SolarZero has liabilities exceeding $40 million owed to both creditors and employees, the liquidator’s first report said.
In late November, the solar company announced its decision to liquidate with “unsustainable operating losses” and liquidity constraints cited as the primary reasons. Russell Moore and Stephen Keen from Grant Thornton have been designated as the liquidators to manage the process.
In a report released on Tuesday, Moore and Keen reported that over 598 unsecured creditors were owed by SolarZero at a total of $39,086,877.
Additionally, there was a total of $1,796,880 in holiday pay owed to employees, who will be contacted individually regarding their entitlements.
An undisclosed amount is also owed to 34 secured creditors.
“We have written to all parties and are working with them to confirm the security position and any assets or stock that these relate to. At this stage, the return to secured creditors is yet to be quantified, and it is unknown whether there will be sufficient funds or assets to meet secured claims in full,” the report said.
Based on the report, SolarZero had used the financing technique known as securitisation, which it said has a complex structure.
Moreover, “A full investigation into the collapse of the group has commenced, including securing all IT and financial records of the group to ascertain any and all avenues of recovery, including considering the actions of the group’s directors.”
The liquidators will provide regular updates to creditors on their progress, beyond what is required by law, as their investigations continue to unfold.
Liquidators Moore and Keen have reported receiving enquiries from interested parties looking to acquire all or part of the SolarZero business.
The liquidators noted that they are maintaining a register of interested parties and are actively working to explore options for a potential sale in collaboration with all stakeholders and the replacement service provider, Verofi.
In a related report, experts are calling for policy changes following SolarZero’s liquidation.
Lightforce Solar managing director John Harman has pointed out a troubling trend in New Zealand’s solar energy adoption, indicating that the country is trailing behind its counterparts.
Harman stressed that the lack of supportive policies in New Zealand has impeded the growth of the solar market.
He also advocates for the introduction of “symmetrical tariffs,” which would ensure that individuals with rooftop solar systems receive fair compensation for the energy they contribute back to the grid.