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Rocket Ticket
Ticket Rocket’s financial woes are becoming clearer as it is revealed that the partner companies owe more than $ 8 million.
A ticketing company that collapsed due to money from Super Rugby franchises is in a huge financial hole, due to almost $ 5 million to the bank and more than $ 2 million to promoters.
But the receivers who control Ticket Rocket have doubts about the true financial state of the company.
Ticket Rocket and associated companies went bankrupt in August.
The move came in the wake of a growing number of stories about how the ticketing agent failed to pay refunds for events canceled due to the coronavirus lockdown.
READ MORE:
* Crusaders and Hurricanes owed $ 341,000 on ticket company collapse
* Ticket Rocket recipients that investigate the financial status of the company, protecting the money of ticket buyers
* Recipients put Ticket Rocket, the troubled ticket company up for sale
* Troubled ticket company fails to keep problems a secret
The news got much worse after the Palmerston North City Council managed to freeze $ 676,000 of Ticket Rocket money in June, a move the company tried to crack down on.
The Hurricanes and Crusaders Super Rugby franchises caused one of Ticket Rocket’s companies, Fortress Information Systems Ltd, to be liquidated in October for unpaid bills totaling $ 341,000.
BDO recipients have been trying to sell Ticket Rocket assets ever since.
BDO’s first set of reports on Ticket Rocket companies, released in November, blamed the coronavirus lockdown, resulting in more than 150 events that Ticket Rocket provided ticketing services for cancellation.
The reports show a series of inter-business loans and financial headaches for recipients.
The 2018 and 2019 annual financial statements had not been signed by an accountant, while the 2020 statements and tax returns had not been completed.
According to the recipients’ reports, the companies collectively owe at least $ 8.4 million.
The largest bill was $ 4.95 million owed to the Bank of New Zealand in loans and overdrafts.
Recipients believe that a “significant amount of refunds” for events affected by the coronavirus were paid through overdraft, BDO said in its reports.
Hamish McNeilly / Stuff
Ticket Rocket’s Dunedin headquarters showcased the company’s former name, Ticket Direct, this year.
However, some developers were still waiting to be paid, representing $ 2.29 million of the $ 2.8 million owed to unsecured creditors.
The people still waiting for repayments are probably also unsecured creditors, and the recipients are still figuring out how big that group might be.
However, that situation could change depending on how the money is held.
If proceeds from tickets were held in trust, something promoters have said Things it is the norm and it was the root of the legal action of the city council; then the claims would be insured, BDO said.
Being insured significantly increases the probability of getting paid.
However, the current claims from ticket buyers and promoters easily exceeded the funds the companies had at the time of the receivership.
It was too early to say whether the unsecured creditors would be paid, as investigations into how much was owed continued in the face of “inaccurate and incomplete pre-receivership books and records,” BDO said.
Supplied
Highlanders CEO Roger Clark, left, and Canadian businessman Matthew Davey of Ticket Rocket.
Previously informed recipients Things the ticket revenue collected after your appointment would be safe.
To add another topic to the pile, the Ministry of Social Development is investigating some companies linked to Ticket Rocket for the subsidies.
Data obtained from the Work and Income website showed that $ 159,904 has been paid to Ticket Rocket-linked companies in wage subsidies.
BDO omitted certain financial information from the reports, including property values and intangible assets that the companies owned.
Releasing that formation would make it difficult to obtain the best possible price for Ticket Rocket, BDO said.
Repeated efforts by Things Contact the owner and manager of Ticket Rocket, Matthew Davey, they have not been aware.
BDO was also having trouble, saying in its reports that Davey, despite cooperating at the beginning of the receivership, was not responding to requests for information.
“[That] it has been detrimental to the judicial administration process. “
