Payment unlikely

Unsecured creditors are unlikely to be paid, the fourth receiver's report for the troubled Kawarau Falls stage one development says.

The report from receiver KordaMentha shows Melview (Kawarau Falls Station) Investments Ltd owed the Bank of Scotland $142 million as at November 25, 2010.

The company went into receivership on May 26, 2009, owing $117 million to the Bank of Scotland, $3.5 million to unsecured creditors and $2451.92 to one preferential employee relating to outstanding holiday pay at the time of receivership.

Between May 26 and November 25, 2010, receivers had been paid more than $46 million.

Outgoings of nearly $35 million in construction costs and nearly $4 million in lawyers' and receivers' fees had left a net cashflow of just over $9 million.