Five Mile Holdings is the company behind the troubled $2 billion Five Mile residential development on the outskirts of Queenstown.
Hanover said said in a statement this morning it had instructed the security trustee FMH Nominees Limited to appoint a receiver to Five Mile Holdings Limited as a result of un-remedied loan defaults.
The statement said the defaults arose several months ago and "Hanover Finance has been working with the borrower to determine a way forward."
"However as a result of other third party creditors commencing legal action against Five Mile Holdings, and enforcement action against other Property Ventures Limited companies (the parent of Five Mile Holdings), Hanover Finance believes it is in the best interests of its investors and other stakeholders to exercise its rights as a secured creditor," the statement said.
"Accordingly a receiver has today been appointed to Five Mile Holdings so that the assets can be best managed for all interested parties and the loan repaid in due course."
High-profile developer Dave Henderson, who owns Five Mile, said yesterday he was planning to take out an injunction today to prevent the receivership proceeding, NZPA reported.
Mr Henderson, the subject of a feature film about his four-year battle with Inland Revenue over tax payments, said lender Hanover and secondary lenders, NZ Castle of the US and Auckland financier Martin Reesby, had all threatened the Five Mile project with receivership.
Mr Henderson is also facing a liquidation application against Five Mile Holdings and its parent, Property Ventures. Christchurch crane-hire company Smith Crane and Construction applied in May for the liquidation to recover a "significant six-figure" amount, according to Fairfax Media's Business Day.
"It is in our view quite improper. We will be applying immediately for an injunction ... I am just going to meet with my lawyers now," he said.
Hanover said the defaults arose several months ago and Hanover had been working with the borrower to determine a suitable way forward.
