Source: FIS
New Zealand-based Oceanic Seafoods has entered into liquidation after an unsuccessful tuna export to Iran valued at about NZD 2.9 million (USD 2.4 millon).
The company, which changed its name to XV Services, bought about 1,200 tonnes of tuna from Silla Co, a Seoul-based deep-sea fishing company, for USD 2.41 million, to sell it in Iran.
Most of the fish was sold to a related company in Iran, Khanevadeh Abi Protein Products Company.
However, between the fish ordering and delivery, Iran’s currency plummeted and when the cargo reached Iran, the fish got stranded at port.
According to a report produced by Oceanic’s liquidator, after lengthy negotiations Silla Co agreed to bill Khanevadeh directly, so the Iranian company would take advantage of the official exchange rates, with Oceanic guaranteeing the debt to the Seoul-based company, NZ Herald informed.
Notwithstanding, the Iranian firm failed to pay Silla Co, which got a judgement against it and Oceanic Seafoods in an Iranian Court that has been appealed.
Therefore, the South Korean firm then issued a demand to Oceanic Seafoods seeking payment of the USD 2.4 million.
Oceanic Seafoods appealed to the High Court at Auckland, but was put into liquidation before it went before a judge.
“After considering the cost of defending the claim in New Zealand and the financial position of the company, the shareholders resolved to liquidate the company,” the liquidator’s first report informed.
As to 5 February, Oceanic owed creditors NZD 3.8 million (USD 3.2 million), including the debt with Silla.