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No Investor Returns From Blue Chip Company Asset Sales

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 9 NZPA - Investors remain unlikely to see any returns from the property management company of the now defunct property investor Blue Chip, liquidators said in their latest report.

Meltzer Mason Heath, the liquidator for 21 Blue Chip companies, said Bribanc assets including collectable debtors, some office equipment and furniture, and cash had not generated enough funds for a distribution to creditors.

Management rights were worthless as a result of Bribanc's actions before liquidation, and because of the significant numbers of investors terminating their management agreements, liquidator Lloyd Hayward said in the report dated September 5.

Bribanc had contracted out its property management obligations to Harcourts and First Street Property Management.

"The companies that investors purchased properties from have no assets other than a debt from Blue Chip NZ Ltd. There is little likelihood that this intercompany debt can be recovered for the benefit of creditors," liquidators said.

Investor deposits had been paid into a Blue Chip NZ Ltd bank account, and appeared to have been used to fund joint venture payments, interest and other payments to investors, and royalties to a company associated with Blue Chip founder Mark Bryers.

Mr Bryers' company, Marinc, is in liquidation and also being investigated by liquidators.

Between February 8 and August 7, Bribanc income of $456,511 included rent totalling $367,256, and $56,263 from a bank account. Payments of $398,791 included liquidators' remuneration of $311,111.

The balance of receipts and payments was $57,720.

Liquidators were also working with the Official Assignee's Office, which was liquidator of a further 26 companies.

Blue Chip invested in housing and property developments on behalf of individuals, leaving some with mortgage repayments on apartments that were never built. The master franchisee, Mide Ltd, was placed in liquidation in February, followed by Blue Chip NZ in April.

A Serious Fraud Office investigation is under way, and around 2000 small investors are owed at least $84 million.

Liquidators had commissioned legal opinions on some issues, and said co-operation may be possible in legal cases on behalf of individual investors if they benefited all creditors.

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