Company Financial Health Info.

[Perik Omo]

Hope somebody in NZ may be able to suggest something here. Son-in-Law's business has been sub-contracting for a larger company in Auckland (Company A) but they have over the last few months got later and later in paying the invoices and only paying in dribs and drabs (i.e. $50k invoices outstanding and only getting paid $5k now and again). SIL has just been asked to carry out a specific piece of work that's going to take 3 months to do and he has managed to get a copy the costings and it would appear that there is no way that Company A can make a profit on the job as it stands so it looks like they have underpriced the job by a substantial amount to get the business. SIL is worried that Company A is in financial trouble as they have recently taken all the company truck fuel cards off the employees and he is now worried that they will not pay the invoices for the new job despite promises to the contrary. SIL needs this work at the moment as he has 3 guys to keep busy or he would walk away now and there is little else coming up in the near future. Is there any easy (cheap!) way to find out the financial state of Company A as there is no point in undertaking this new job if there is no hope of getting paid?

[Perik Omo]

Thanks both for the replies. SIL has been with me here in France for the past week and left today to go back to Auckland where he will have some big decisions to make when he gets there, daughter and 3 children are staying here with us until things become clearer. We did some more investigating on the first website mentioned and discovered some things have been happening since April:

1. Company A is now a wholly owned subsidiary of Investment company I with the same directors on both.

2. Investment company I is owned by two trusts split 50/50 which have an accountant in Auckland as the (sole) director of both trusts.

Also found out that Company A owes another sub-contractor $300k for work in Christchurch whch has been outstanding for 3 months.

[Perik Omo]

OK, thanks. I'll pass that info on for when he gets there.