KEY POINTS:
Investors with failed property business Blue Chip got no comfort from liquidators who yesterday said there was little hope of any money being available to pay people.
The first report into 19 companies placed in liquidation last month showed apartment developments would not proceed and most companies had either no assets or their debts exceeded the estimated value of any assets.
The companies could owe as much as $58 million, according to reports from Meltzer Mason Heath.
Kingsley Ltd sold apartments in Auckland's St Martins Lane and at Clearwater Cove. It has estimated losses of $17.6 million and no distribution can be predicted.
Lanark Ltd, which sold units on the Turner/Waverley St corner in Auckland's CBD, has estimated losses of $5.8 million. The development would not proceed, the liquidators said.
The Landings Management Services Ltd had never traded, had no assets and was dormant.
ART Apartments (2006) Ltd was the same.
But ART Apartments Ltd shows an estimated $4.6 million loss. Its assets are debtors owing it $1.2 million and $1.9 million in inter-company receivables. But the estimated realisable value of its assets is listed as "unknown", versus $4.6 million in unsecured creditors.
ART Properties Ltd has no assets and no liabilities.
Auckland Residential Tenancies Ltd shows an estimated $4.3 million loss. Although its assets are $1.8 million owed by debtors and $3.5 million in inter-company receivables, it has unsecured creditors of $4.3 million. The liquidators do not know if they can realise any of its assets.
Becroft Ltd is showing a potential $11.1 million loss. Although its assets are $11.1 million in deposits paid to it, unsecured creditors are owed precisely the same amount and the amount available for creditors is unknown.
"The company undertook the sales of property developments in conjunction with the property investment business known as Blue Chip. The particular development with which the Company is associated is Emily Place.
"We understand that this development will not proceed," the liquidators said.
Blue Chip Joint Ventures Ltd had no assets or liabilities but acted as the guarantor to joint venture arrangements from January 1, 2006. Joint ventures were a transaction where an investor bought a property, and in return for a guaranteed income or guaranteed loan repayments agreed to the company receiving a share of the net rental income and a significant share of any capital gain that might occur on the property.
Blue Jay Holdings Ltd had $684,000 in assets but was unlikely to have any money for its creditors.
Blue Sky Holdings Ltd shows an estimated $3.8 million loss and no assets.
Bradshaw Ltd shows an estimated $7000 loss and had one asset _ $70,000 invested in an Auckland apartment which was mortgaged. The debt exceeds the unit's value.
Bribanc Property Group Ltd shows an estimated $423,000 loss and no meaningful estimates could be given of any payout.
On a bright note, the liquidators recovered $126,000 from a Bribanc bank account.
Denby Ltd has an estimated loss of $2.2 million. It was selling properties in the Daliarose development which is not completed and deposits remain an asset of the company and a liability to the investors.
Ilminster Ltd sold apartments and is associated with the Quba project. The contract with the developer has been cancelled and the company shows estimated losses of $2.6 million.
LTS Ltd has estimated losses of $2.9 million. Mckeffry Ltd has no assets or liabilities. Pendale Ltd shows an estimated $96,500 loss.
Strowan Ltd, which sold properties at the Addison development at Papakura and apartments in the Heritage Hotel on Hobson St, shows an estimated $2.8 million loss.
A creditors' meeting will be held later this month, with a national live video link to cater for investors spread throughout New Zealand.
* Monday's Business Herald: Bob Bangerter, who had the original idea on which Blue Chip was founded, tells all in an exclusive interview.
