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Commonwealth Bank of Australia has called receivers into two Perron Development businesses after the Auckland firm said this month it had no new building projects on.
CBA appointed Michael Stiassny and Brendon Gibson of KordaMentha to Perron Rural Finance, previously called Perron No 10, and Hurstmere on Strand, previously called Kea Investments.
Cameron Marsh and Mark Perriam, Perron's founders, are directors of both companies but Stiassny said yesterday he could say nothing about the arrangements.
Perriam said yesterday a loan of about $40 million had come to the end of an 18- month term and was unable to be refinanced due to market conditions.
He said all interest payments had been made but the bank was unwilling to extend the term.
Initial receivers' reports are due on January 1 and six-monthly reports by June 30.
Last week, Perriam denied there were any major financial problems but said his firm was not starting any new projects. He rejected speculation the development business would be shut or liquidated.
Meanwhile, some investors are complaining about lack of cash flow after buying units in the Sofitel Queenstown, developed by Perron.
Investors bought into the 82-unit project with three years of guaranteed minimum 5 per cent rental returns. But some say they have not got the money owed.
