/cloudfront-ap-southeast-2.images.arcpublishing.com/nzme/GHAASM7TOJFP7LGHWNTQHV3QMY.jpg "Red flag: Russian-owned NZ company’s liquidation highly unusual")
Russian President Vladimir Putin visits an exhibition dedicated to the key events of the outgoing Year of Teachers and Mentors at the Kremlin in Moscow, Russia. Photo / AP (Dec, 27, 2023)
A New Zealand-registered company, originally funded by Russian interests, has gone into liquidation owing $7.9 million, with the Auckland-based liquidator seeking advice from the Russian Embassy in Wellington and engaging a lawyer in Russia to
help him.
Pritesh Patel, an insolvency practitioner and accountant based in Auckland, said many aspects of the liquidation were extremely unusual, including his need to engage a Russian legal specialist to assist him – something he’s never done in his many years working with companies. Denis Belyaev, a specialist in foreign investment and corporate structures, is helping Patel. Belyaev is of Nexons in Moscow. Nexons was previously part of the global law firm, Dentons.
On Tuesday, Patel issued a six-monthly report on Credomax, incorporated here in 2007.
That business is wholly owned by Russian, Dmitry Perman of Ashkelon, Israel and Patel said the original source of funds for the company had come from Russia.
That raises a number of issues in relation to New Zealand sanctions against the Vladimir Putin-led country, he said.
Patel wrote to the Russian Embassy in Wellington to seek guidance about publishing a public notice about Credomax in Russia where it has links.
Advice Belyaev the Russian lawyer, resulted in Patel negotiating with a publisher to get a public notice out in Russia about the business being in liquidation. Public notices were also placed in the United Kingdom, Scotland, British Virgin Islands, Latvia, Lithuania and in the New Zealand Herald.
Shareholder Dmitry Perman submitted a claim of $7.9m and Patel said that tallied with the company’s financial statements.
New Zealand’s Inland Revenue is claiming $88,000.
Patel said tourism and salmon farming in Queenstown were cited as reasons for Credomax being formed but he had found no evidence that it had traded in these two sectors or indeed even traded.
Assets of the company include funds on deposit of US$5.3m.
The Credomax liquidation was out of the ordinary for several reasons, Patel said today.
“It’s unusual for a New Zealand liquidator to publish public notices in countries like Russia, Latvia and Lithuania. I identified that there were related parties from those countries who had loaned money to the company. So it was my duty to try to let them know. I’ve done everything humanely possible,” Patel said.
Patel said he had formed the view that the liquidation required outside expertise to comply with New Zealand’s sanctions against Russia over the war against Ukraine as well as its laws in relation to anti-money laundering and counter-terrorism.
In 2022, New Zealand imposed sanctions on Russia “in response to their illegal invasion of Ukraine”.
Foreign Affairs and Trade in New Zealand says: “Our sanctions are aligned with those of like-minded countries from Asia Pacific, Europe and North America including Australia, Japan, the United Kingdom, the European Union, the United States and Canada. Together we aim to exert pressure on Russia to change course by limiting its ability to finance and equip the war in Ukraine.”
Patel said that to comply with AML law here, he formed the view that the company’s source of funds needed to be verified.
“As the source of funds was originally Russia, the liquidator has identified a reputable Russian law firm to verify the company’s source of funds,” his six-monthly report said.
This includes a “double check on the Russian shareholder to ensure he is not subject to New Zealand sanctions or associated with a sanctioned individual, provide an overview of the Russian shareholder’s public reputation, check for any association with any criminal and/or terrorist organisations, check for any association with the current or previous Government of the Russian federation”, Patel’s report filed with the New Zealand Companies Office on Tuesday said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
