Manta5 Faces Massive Warranty Claims After Collapse
As Manta5 navigates through the complexities of liquidation, it faces a daunting landscape of warranty claims that could amount to $3.4 million, significantly impacting its financial status. The company, which pioneered the hydrofoiler technology with its XE-1 model, found itself in dire straits following a series of production delays and mounting warranty issues. Initially reported debts exceeded $1 million, but subsequent assessments revealed that warranty claims had ballooned, necessitating a reevaluation of the total financial obligations.
Creditors include various contract manufacturers based in China and Mexico, in addition to significant local debts. Callaghan Innovation is owed $409,000, while the Bank of New Zealand (BNZ) is owed $250,000, and the Inland Revenue is owed $124,000. The secured creditor, BNZ, has seen its claim reduced to $96,330, but other unsecured loans remain unpaid. Staff wages and annual leave totaling $61,000 have already been disbursed, highlighting the pressures on Manta5’s cash flow.
Founded by Guy Howard-Willis, Manta5 launched its first aquabikes in 2019 and experienced initial sales success, generating around $5 million in revenue from over 400 units sold. Nonetheless, the company struggled to meet large orders from hire operators, leading to a significant decline in sales prior to entering administration on April 16, 2024.
Efforts to secure additional funding to alleviate financial strain were unsuccessful, ultimately culminating in the transition to liquidation on May 21, 2024.
The future prospects for Manta5 appear grim, as the total deficit remains uncertain due to insufficient financial information. The warranty claims, coupled with existing debts and unpaid obligations, pose a significant hurdle for the liquidators. With Manta5’s innovative products unable to sustain the business amidst operational challenges, the road ahead appears fraught with difficulties as creditors await resolution in this complex financial landscape.