Belgrave Finance fails - $22 million owing

Auckland based Belgrave Finance today called in receivers, becoming the 20th finance company failure in the last two years.

The property development financier which owes just over $22 million to about 1000 debenture investors said it had become apparent two weeks ago that an expected substantial funding line was no longer available to the company.

Since then it had investigated various options including a moratorium, capital restructure and alternative funding lines.

However the company's board had decided that given the "tough market conditions" receivership was "in the best interests of our investors".

The company's trustee Covenant Trustee Company has appointed Grant Graham and Brendan Gibson of KordaMentha.

"We have been affected by the current property market downturn and the inability of developers to raise alternative funding from other financiers," managing director Shane Buckley said.