Shock resignation knocks troubled cup company

By NICK PERRY

The chairman of the America's Cup Village Ltd has walked out unexpectedly just 21/2 months before cup racing reaches its climax - at a time when village administrators are being called to account.

Lindsay Fergusson announced his resignation from the board yesterday, and was replaced immediately by board member and Auckland lawyer Peter Kiely.

Mr Fergusson said he was "flat out" in his role as chairman of cup graphics company Virtual Spectator, and no longer had time to commit one or two days a week to the board.

"Now I can sit back and enjoy the cup, and start answering the 50 or 60 e-mails I get every day about Virtual Spectator."

The announcement came a day after an emergency meeting of Infrastructure Auckland that could see an increase to a $2 million borrowing facility to cover village cash shortfalls.

Running costs are believed to have risen well above the village's expected budget of $4 million.

Infrastructure Auckland is due to make an announcement by the end of the week.

The chairman of Infrastructure Auckland, Craig Little, said the only connection between the resignation and the meeting was that Mr Fergusson wanted to ensure the village's finances were shipshape before he left.

A village spokeswoman, Sue Foley, said that at this stage it did not expect to exceed its budget of $85.7 million of Aucklanders' money.

"There was provision there for us to apply for extra money [from Infrastructure Auckland] and we are quite entitled to do that."

Mr Fergusson gives up a nominal salary of $35,000 and a sponsor's car. He said he had not received any kind of payout as a result of his departure.

Mr Kiely said he was taken by surprise by the resignation, but was happy to take on the role of chairman for the remainder of the cup.

Auckland City councillor Jon Olsen said that if the village were in good financial heart as claimed, Infrastructure Auckland should publicly open the books now instead of waiting until March.