News

Zip Internet has paltry assets to pay off huge debt to kiosk investors

March 31, 2004

AUCKLAND, N.Z.--Zip Internet has only about $1,200 in its bank account to pay nearly $3 million in debt, a liquidator has discovered.

The shopping mall Internet kiosk company has been the subject of articles in The New Zealand Herald. The newspaper reported many disgruntled investors were left in the wake of the collapsed company.

The Zip collection of Internet companies had proposed to place kiosks in shopping malls, hotels and motels for customers to browse the net for free. Revenue was to have come from advertising on the kiosks themselves and via the Web. Investors were sold kiosks and reportedly were told that they would receive a share of the advertising revenue from each kiosk.

John Whittfield of the liquidation firm McDonald Vague said he had advised kiosk owners to seek legal advice.

Police Det. Ian Tuke of the fraud squad said his office was looking into the matter, the newspaper reported.

James Potter is listed as director but the assessment may also include former director Dean Williams, who is also a shareholder. The other director, Kenn Rangi, died this year.

The Herald previously reported that shopping mall giant Westfield, was considering action against Zip and its sister companies. Andrew Davidson, deputy director of Westfield, said in the article that Zip Technologies failed to pay its license fees last year and as a result, Westfield terminated the license agreement with Zip.