The land earmarked for stages two and three of the Kawarau
Falls Station development, worth almost $85 million, could be
up for sale as receivers try to repay almost $134.4 million
owed to creditors.
Peninsula Road Ltd, owned by Nigel McKenna of the Melview
Group, was placed in receivership on March 2 and in
liquidation on March 24.
The land, next to partially completed stage one, has not been
built on.
The first report of receiver Tim Downes, of Grant Thornton,
was released yesterday.
"Since our appointment we have not disposed of any property
of the company. We are currently in the process of assessing
our options for disposal of the receivership property," it
says.
Grant Thornton was appointed receiver of the company by first
mortgagee Fortress Credit Corp, which is owed $42.5 million.
"Our appointment arose after the company failed to fulfil its
obligation for repayment of funds loaned," the report says.
Other creditors include Allied Farmers, whose loan to
Peninsula Rd was $76.3 million but could reach up to $83.4
million.
Allied Farmers had written down $99 million of the debt it
had taken over from Hanover Finance because of the
unlikelihood of stage two and three being completed after
stage one was put in receivership.
The Inland Revenue Department was owed $17,204 as a preferred
creditor and $99,092 as an unsecured creditor.
Fifty-four unsecured trade creditors were owed $4.3 million.
"Related-party loans" - loans to the company by Mr McKenna's
other companies - totalled $11.1 million.
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