Liquidators' First Report Advance Exports (NZ) Limited (In Liquidation)

(b) The company has for some time been carrying a number of accounts where
payment was not forthcoming. Further bad debts and a low collection rate in
January 2004 put further strain on cashflow and the company’s ability to pay
creditors.
As a result the shareholders and the director consulted their advisors and following the
advice received concluded that the only responsible approach was to place the company
into liquidation.
4. Statement of Affairs
The Liquidators have prepared a Statement of Affairs being the assets and liabilities of the
company at the date of liquidation. We attach a copy.
5. Proposals for Conducting the Liquidation
5.1 Realisation of Assets
Trade Debt
In the first instance trade debt will be collected in accordance with the company’s
terms and conditions of trade. For debt not paid further collection action will be
applied and, where necessary, legal action adopted.
Inventory
After assessment of retention of title claims inventory available will be shipped to
the customers ordering this. These customers will be required to pay for this
inventory in advance.
Fixed Assets
Fixed assets will be sold by way of public auction or private treaty.
5.2 Investigations
The Liquidators will review the company's books and records, conduct an initial
investigation into the trading affairs of the company and conduct all other
investigations that the Liquidators are charged to do.
6. Creditors Claim Form
Creditors should complete and return the attached Creditor's claim form by 3 March 2004.
Creditors who do not make a claim within the period may be excluded from any
distribution that may be made.