KEY POINTS:
A Singaporean property developer is on the verge of starting bankruptcy proceedings against Blue Chip founder Mark Bryers, following a hearing in the High Court yesterday.
Bryers owes Consolidated Technologies Development $13.6 million for 49 residential sections along the second and sixth fairways of the Gulf Harbour golf course.
Consolidated Technologies - owned by the family interests of Singapore-based Cheow Teck Tan - has been waiting since October 26 for its money.
Yesterday in the High Court at Auckland, it argued for a summary judgment requiring Bryers to pay up, plus interest and costs. Interest had been accruing at $6900 a day - to a total of $1.8 million - since the October settlement date passed, CTD's lawyer Murray Tingey told the court.
Justice Judith Potter has reserved her decision. If CTD wins, it is most likely to begin proceedings to bankrupt Bryers.
Representing Bryers, lawyer Phillip Rice asked the court to adjourn the hearing saying he had been instructed only the day before and hadn't received all the relevant documents until late that evening.
But Justice Potter declined the request, because Bryers had had more than a month's notice of the hearing and ample time to instruct a lawyer, she said.
Bryers, founder of the Blue Chip property investment scheme which collapsed five months ago owing at least $84 million to more than 2000 small investors, is understood to be running a similar property business in Australia.
Last month, he was spotted on a luxury tour of Scottish golf courses, including the sport's spiritual home, St Andrews.
Bryers agreed to buy 49 sections from Consolidated Technologies as part of a wider deal, in which Blue Chip interests would resell properties in the subdivision to their investors. Only the purchases Bryers personally agreed to are being pursued.
Murray Tingey told the court that there was no dispute between the two sides and that there was an agreement between CTD and Bryers to buy the sections.
He said his client had been "ready, willing and able to sell". Bryers had not responded to a settlement notice served on November 8, and had not indicated that he had any concerns about settling. Tingey said there were loans outstanding over the sections to financiers Bridgecorp and Marac, which were incurring total interest of $6921.97 a day.
Rice argued that the parties had agreed on standard Auckland District Law Society terms, subject to certain amendments, and that a separate law society agreement should have been produced. He said Bryers was entitled to delay exercising his rights until then.
Creditors unlikely to get a cent
A Mark Bryers-associated company put into liquidation by the Government is unlikely to return anything to its creditors.
Marinc Developments Ltd and its parent Marinc Ltd were a key part of the Blue Chip scheme, involved in supplying investment properties.
In its first report on Marinc Developments, the office of the Official Assignee says it has not received a list of creditors or a statement of affairs from Bryers, the company's sole director, and it is "highly unlikely there will be a dividend".
Marinc Ltd received $42.5 million in Blue Chip investors' deposits, and Associate Judge David Abbott said last month the whereabouts of the deposits was unknown.
Meanwhile, receivers were appointed last month to a business involved in the Gulf Harbour Country Club, the golf course which the Consolidated Technologies subdivision borders.
Bryers is the sole director and a shareholder of that business. The receivers say it owes failed Capital+Merchant Finance a "significant sum".
