KEY POINTS:
A Government entity has swooped on Blue Chip companies which got at least $42 million from investors to buy residential properties.
Earlier this year, creditors made strenuous calls for the state to get involved in the financial debacle and now the Official Assignee's office has put Marinc Ltd and Marinc Developments Ltd into liquidation.
The Official Assignee can assist with liquidations with a high degree of public interest. The office is part of the Ministry of Economic Development's Insolvency and Trustee Service.
Meltzer Mason Heath, a privately owned insolvency specialist firm, is the liquidator for 21 other Blue Chip businesses. It was appointed earlier this year.
The Marinc companies were previously called Ingot and were a key part of Blue Chip's businesses, involved in supplying properties. But precisely how the Marinc/Ingot companies operated and what assets they had will remain unknown for a while.
The first report on Marinc/Ingot is due next Friday but the second report is not due until July 15. Fuller reports are due to be issued on January 4 next year.
Marinc Ltd's sole shareholder is listed by the Companies Office as Walters Trustees Ltd of Walters Law, Level 23 at 191 Queen Street, Auckland. Lawyer John Walters is Blue Chip's former chairman.
Marinc Ltd's sole director is listed as Mark Bryers of Remuera.
Marinc Developments is owned by Marinc Ltd.
Out of three Marinc entities registered with the Companies Office, only Marinc Investments - whose sole shareholder is accountant John Lowther of Mt Eden - remains.
The Registrar of Companies made the liquidation application before Associate Judge David Abbott in the High Court at Auckland.
The move was necessary to protect assets and allow a comprehensive and swift investigation into Marinc activities, Justice Abbott heard.
Marinc Ltd received $42.5 million in deposits paid by investors in Blue Chip New Zealand and other entities with the Blue Chip group of companies, Justice Abbott wrote in his judgment.
"As of today's date, the whereabouts of the deposits paid by investors is unknown as the defendant company has no financial reports detailing that information," he wrote.
Blue Chip creditors have claimed more than $80 million from the various businesses but this week barrister Paul Dale told his clients to abandon hope of getting money from either the liquidations or Bryers.
A creditors' meeting in Auckland during March sparked intense debate about whether the Government should step in and take control of the total 53 Blue Chip-related companies. Creditors called for statutory management of the entire business, although Jeff Meltzer, who is liquidator of 21 other Blue Chip companies, questioned this at the time.
PricewaterhouseCoopers explained Ingot's role in Blue Chip when it wrote an appraisal report three years ago when Blue Chip was considering buying companies from Bryers.
Blue Chip had a five-year supply agreement with Ingot, a property trader and developer, PWC said. Ingot would supply residential property stock to Blue Chip, which it would then offer as investments to its clients.
At October 31, 2005, Ingot was obliged to supply Blue Chip with 707 properties, the report said.
Ingot's operations were "closely intertwined with those of Blue Chip" and Bryers was "actively involved in the day-to-day activities of Ingot", the report said. Blue Chip's reliance on Ingot was also so significant that it was noted by the company's auditor in its audit report.
Daniel Grove, a barrister working with Dale for 300 Blue Chip investors, yesterday welcomed the Official Assignee's move on Marinc.
This week, Dale warned clients to expect more liquidations from the Blue Chip businesses.
