Blue Chip probes continue - liquidators

Investigations continue into possible breaches by directors of Blue Chip companies of reckless trading and other breaches of provisions of the Companies Act, liquidators Meltzer Mazon Heath say.

In the latest six-monthly updates into some Blue Chip companies the liquidators also said investigations continued into potential claims arising from advice given to the Blue Chip Group in relation to its products.

They were waiting an opinion from Queen's Counsel on possible causes of action and the strength of any claims that may be made.

If it was concluded there were strong claims available to the liquidators, a funding proposal would need to be promoted to potential funders, the update said.

"There is no certainty that the existence of such claims will be confirmed, nor is there any certainty that the liquidators will be able to obtain funding on the strength of such claims."

The update noted that Blue Chip co-founder Mark Bryers was made bankrupt in October owing an estimated $173 million to creditors.

- NZPA