Nest founder’s $ 122 million construction company in liquidation, creditors complain

The founder and developer of New Zealand’s largest furniture store has told suppliers that their construction company cannot pay them, is trying to refinance them, and is begging them not to sue.

Vinod Kumar, director of Vijay Holdings that built the new Nido store in Henderson, sent a letter to creditors saying he was in financial trouble and that “we won’t be able to pay the balance soon, but over time that’s certainly the intention.”

Daran Nair and Heiko Draht of Greenlane Chartered Accountants were appointed liquidators of Vijay Holdings at the request of shareholders on November 6.

Kumar told the Herald today: “The construction company has been around for 22 years and has done $ 122 million of work. It is very disappointing for us.”

Vijay is no longer in a position to pay creditors until he refinances and an attempt has already failed, Kumar told creditors in the letter.

“Taking any legal action currently puts our refinancing in jeopardy,” he added.

“We also have a $ 3 million job to complete the parking lot and remaining works on the building. We would appreciate your kindness once again and in true Kiwi spirit, we seek your extended support so that we can complete the project and proudly call it home. “Grown up world-class shopping experience. I know you may feel angry and disappointed. But trust me, I haven’t taken on this project to go that far and give up,” he wrote.

Creditors complained to the Herald today that they were owed $ 300,000 for construction work and scaffolding. They had staff to pay and families to care for and they were desperate for money, they said.

They had been waiting for weeks and were initially told that the money would be paid in part, but instead the liquidation was suddenly announced, shocking and shocking them.

Kumar said today: “It’s like any other construction company. It was getting more difficult with delays and rising costs. My heart says that one day it will look good. It is just the moment. my family”.

When asked if Nido’s retail business was in financial jeopardy or at risk, he said: “I’m not an accountant, but if what we’re talking about turns out, it isn’t.”

Kumar declined to say how much Vijay owed the creditors or how many creditors were owed money, but revealed that he had called the liquidators Greenlane Chartered Accountants and that his appointment was not made by a creditor.

Nair declined to provide details of the settlement, saying it would be in his first report, which has yet to be issued.