KEY POINTS:
Two lawyers acting for more than 300 Blue Chip investors say they are aghast at the scale of the task and are angry about what they say is a distinct lack of Government aid for investors.
Many of them are elderly and are women - often widows faced with financial disaster after investing with the failed Auckland apartment specialist, say Paul Dale and Daniel Grove.
They say the task before them is overwhelmingly complicated and they have started many courses of action. But they are increasingly disenchanted with the liquidation process and the Government's lack of response.
Liquidators yesterday challenged the criticism.
Arron Heath, at Meltzer Mason Heath, said action was taking place. A six-monthly update was due to be issued next month on the first Blue Chip companies to go into liquidation earlier this year, he said.
"But it's too early to say quite frankly what - we have not determined the content of those reports," Heath said.
Jeff Meltzer said earlier this year he was in close touch with the Commerce Commission, Securities Commission, Companies Office and Serious Fraud Office over Blue Chip.
Commerce Minister Lianne Dalziel has rejected calls for statutory management and backed the liquidators' approach.
But Dale and Grove are demanding to know what action the liquidators have taken.
Although the Government agencies have revealed investigations, the barristers say they are yet to see any real progress or proper assistance for the investors.
"I'd like to see something from the liquidators. This is a massive task. Daniel and I are run off our feet. There should be legal aid for investors and a law firm appointed by the Government as statutory manager which we would assist," Dale said yesterday.
Grove says his firm has been greeted only with hostility from the liquidators so far.
"We requested a document and were told we needed a court order."
The barristers want Blue Chip directors examined and specific questions put to them about developments in St Martins Lane, Emily Place and Turner St, where apartments appear to have been sold twice.
"How is it that that could happen?" Dale asked.
The barristers listed their action so far as:
* Issuing injunction proceedings against lender GE, which provided money for many Blue Chip investors to buy Auckland apartments. The injunction is an attempt to delay forced sales of houses after loan defaults and is due to be called again for mention in the High Court at Auckland next month. Dale said he would be seeking a fixture soon.
* Challenges over alteration of documents to ensure loans were provided by changing words on applications relating to investors' income and employment status.
* Issuing proceedings against two Auckland lawyers - whom the barristers refused to identify - for professional negligence over advice to clients who became Blue Chip investors.
* Cancelling 30 sales on the Barclay apartment block on Albert St. Dale said the investors' right to cancel the contracts had been challenged by the block's developers, Greenstone Group.
* Cancelling agreements on apartment sales in the 157-unit Bianco, near the top of Queen St. This is being developed by the interests of property developer Tim Manning.
* Cancelling sales agreements in the 172-unit Stadium, still under construction on Beach Rd.
* Cancelling sales agreements in the Chatham at 70-76 Pitt St, where the liquidators listed Greenstone Trustees as the vendor and developer and said deposits were paid in cash and are held in a solicitors' trust account.
Dale questioned sale agreements on the Barclay and cited one case where 1 per cent of the sale proceeds were to go to the investor and 99 per cent to a Blue Chip business.
He also questioned rental guarantees, citing a two-bedroom apartment in that block pre-sold with a rental promise of $710 to $760 a week.
Blue Chip investors had paid deposits into lawyers' trust accounts, and the barristers say there is a foundation for a legal challenge to have those funds returned.
