Matauri X buys time on loans

A majority of shareholders in financially troubled Far North coastal land-owning entity Matauri X Incorporation have approved changes to its powers and objectives to allow settlement of its huge debt to two finance companies.

Under the latest settlement arrangement, Matauri X has until June 30 to find another lender to replace millions of dollars of debt owing to Bridgecorp Finance and Instant Funding.

Bridgecorp, as principal lender, has been owed $4.3 million and Instant Finance, the priority first mortgage holder over land in the main Matauri X block, is owed more than $1 million.

The debts and subsequent defaults arose after Matauri X borrowed money from the two companies to invest in now failed Whakatane mineral-water bottling company Eternal Waters in 2001.

The loans were taken out when, without the knowledge or consent of most of the incorporation's 430 shareholders, Matauri X mortgaged prime coastal land at Matauri Bay, north of the Bay of Islands, as security.