Expected losses from a collapsed Queen St Forex Brokers firm have grown considerably as it was revealed the company owes creditors more than $10 million.
The state of Forex Brokers, founded in 1995 and operating out of the Dingwall Building, was disclosed by liquidators who also said assets of the company appeared insufficient to repay creditors even half a cent in the dollar.
Two creditors of the company collectively owed around $300,000 and, as reported by NZ Herald, said they had started to experience delays in transmitting payments through the company since November last year, but that this escalated into non-payments in March and April.
He was blaming it on banks – saying it was a bank error – he told me not to worry. ‘I’m changing banks in the New Year, I’ll get it sorted’,” one said of Forex Brokers’ managing director Russell Maher.
It got worse and worse. And the next thing was we’ve got no payments: And no one was answering the phones in the office,” another said.
PKF’s Chris McCullagh said while liabilities were still to be confirmed they were substantial and exceeded $10m. Assets of the company, primarily around $10,000 in cash and a car, were likely worth $40,000, he added.