[s[ The Cook Islands shipping company, Pacific Schooners, is facing legal action from two local businesses.
The Cook Islands shipping company, Pacific Schooners, is facing legal action from two local businesses.
Apex Agencies and Porter Groups Holdings have applied to the High Court to wind up the troubled company.
The creditor companies are owned by local businessman Brett Porter, who said Pacific Schooners had been given as much time as possible to resolve its outstanding issues.
He said he would not comment further as the matter was before the court.
Sources have told the Cook Islands News that the company is in serious financial difficulty.
Meanwhile, the Cook Island community of Penrhyn Island claims the company also failed to deliver vital supplies.
Residents say food, building materials, and household goods were among the supplies they had been waiting for since last September.
Lawyer and former Penrhyn MP Wilkie Rasmussen said Pacific Schooners had also failed to pay people for fish it was supposed to export to Rarotonga.
He said the company owed 25 households about US$80,000.
Mr Rasmussen had prepared a statement of claim against PSL on behalf of the families and expected to file it this week.