KEY POINTS:
Statutory demands for more than $315,000 have been made against four associates of property specialist Blue Chip by investors who want their money back.
Lawyer Paul Dale said yesterday he had served the demands from a group of Tokoroa investors against four Blue Chip entities. They are:
* Blue Chip New Zealand Ltd. Incorporated in 2003 and owned by Blue Chip Financial Solutions Ltd, the Australian Stock Exchange-listed entity. Its sole director is listed as Jock Irvine, former board member of the listed company, although he said yesterday he had quit all involvement with Blue Chip.
* Kingsley Ltd. Incorporated in 2004, owned by Blue Chip Homes Ltd and its directors are Neil Bell and Rikki Flowerday, who have both worked at Blue Chip.
* Rockfort Ltd. Incorporated in 2003, owned by Lowther Nominee Trustees Ltd, an associate of Auckland chartered accountants Lowther. Mark Bryers, Blue Chip's founder is the director.
* Lanark Ltd. Incorporated in 2004, owned by Blue Chip Homes. Its directors are Bell and Flowerday.
Bryers yesterday distanced himself from the situation saying the companies were not related to the ASX-listed entity because they had been sold to a franchisee. "I can't see any relationship between the listed company and the complaint that Paul has," Bryers said.
But he is worried about other issues, particularly comments about the company and people seeking money to help investors.
"I'm concerned about making sure the New Zealand clients are looked after and that they don't lose one dollar and repeated attacks on the company only undermine people's confidence in the company. No company can survive an entire attack on investors' confidence," Bryers said.
Dale said he had received verbal agreements for payment for the amounts claimed but after waiting some weeks, no money was forthcoming. But some Blue Chip investors said last month they had got partial payments.
Irvine said he had left Blue Chip's board and wanted to be removed from all its subsidiaries. He was surprised to learn that both the ASX and the Companies Office in New Zealand still listed him as a director of Blue Chip and its associates.
"I left because I turned 70 and I decided it was time to stop and smell the roses," said Irvine, formerly Blue Chip's chairman.
Dale said the demands against the four companies were for three separate amounts: $108,203, $99,179 and $107,972.
Bell of Blue Chip said last month all investors would be paid but Bryers said the task was too large for the deadlines Bell had promised. Bryers appeared on TV One's morning business programme last month describing the payment problems at Blue Chip as a "speed bump". In an interview with the Herald, he asked investors to be more patient.
But Dale said yesterday the situation was extremely serious and he had been flooded with calls for help from investors.
Last Wednesday, Dale spoke at a meeting of Blue Chip investors.
More than 130 investors have since organised themselves into smaller groups in an attempt to seize control of the rent from tenants in apartments they bought through Blue Chip or to recover deposits paid on units not yet developed.
The Companies Act 1993 defines a statutory demand as a call by a creditor for a debt and Auckland law firm Inder Lynch published an explanation of the mechanism.
"A statutory demand is a written notice requiring a company that owes a debt (debtor company) to pay the debt to the person the debt is owed (creditor). Once the statutory demand is served, the debtor company has 15 working days to pay the debt or to enter into an arrangement agreeable to the creditor for payment of the debt.
"If the debtor company does not pay the debt or enter in to an arrangement to pay the debt within 15 working days, the creditor then has another 30 working days during which it can rely on non-compliance with the statutory demand as evidence of insolvency and begin liquidation proceedings against the debtor company," Inder Lynch said.
What next?
* Companies Act 1993 defines a statutory demand as a call by a creditor for a debt.
* Debtor company has 15 working days to pay the debt or reach a settlement.
* Non-compliance can be used as evidence of insolvency.
* Liquidation proceedings can then be taken against the debtor company.
