Guest drop forced boutique hotel's receivership

Hotel Du Vin. Photo / Carolyn Robertson

A drop in the number of people staying at luxury boutique hotel and wedding venue Hotel du Vin was the main reason for its going into receivership.

A report by Kordamentha receivers Michael Stiassny and Grant Graham reveals they were called in by the Bank of New Zealand in July after the business and its associated parties failed to meet payments on a $12 million loan. Stiassny said the main reason for this default was a lack of guests.

"The receivership arose due to a steady decline in occupancy levels through 2008 and the first part of 2009 that led to an inability to service debt levels across this and associated companies."

Stiassny said registrations on the Personal Property Securities Register showed the company owed money to the BNZ, ANZ National, a number of clothing and construction companies and wine and spirit maker Pernod Ricard New Zealand.

Staff were owed $87,000 which the receivers expected to be able to pay and the Inland Revenue had also lodged a claim for $24,400.

But unsecured creditors who were owed a total of $195,000 were unlikely to be paid.

"Based on our preliminary estimates there will not be any funds available to unsecured creditors," Stiassny said.

The 15ha property which has 48 chalets, a spa complex and vineyard was bought by wealthy American Ed Aster and his wife in 2001 on a visit to New Zealand. He paid $8 million, although it was valued at $4.57 million at the time.

The property, located south of Auckland in Mangatawhiri, went to tender last Thursday under real estate agents Bayleys but a buyer has yet to be found.