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Two more companies of embattled entrepreneur Dave Henderson have been placed in receivership at the request of the project financiers.
The Living Space hotels, one in Castle St, Dunedin, which operates under Henderson's company Castle St Ventures and another in Tay St, Invercargill, under Tay Ventures, were placed in the hands of Auckland receivers from accountancy firm Grant Thornton.
At present Henderson is facing receivership and liquidation applications on several fronts, mainly concerning his ambitious $2 billion high-density Five Mile subdivision for up to 10,000 people on a 33ha site on the outskirts of Queenstown where work has been stalled since February.
Auckland financiers Equitable Group placed the two hotel companies in receivership, owing an undisclosed sum, for payment defaults, receiver Tim Downes said yesterday.
He declined to give further details until the receivers' first report next month.
Separate company Living Space, which is not part of the receivership proceedings, is managing all three Living Space hotels, in Invercargill, Dunedin and Christchurch. The last did not come under the receivership order as financier Equitable Group had no stake in Christchurch, Living Space general manager Nick McCaw said yesterday.
He said that in spite of the receivership, the Dunedin and Invercargill hotels were still open and "trading strongly".
Almost a fortnight ago, Hanover Finance had Five Mile put in the hands of receivers because of loan payment defaults over several months. Hanover was understood to be owed about $70 million.
In separate proceedings in the High Court at Christchurch on Monday, a liquidation application by a Christchurch crane company covering Henderson's Five Mile development was adjourned for a week. The application also includes a claim by Inland Revenue.
- OTAGO DAILY TIMES
