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Small Ray Of Light For Blue Chip Investors

Contributor:
Fuseworks Media
Fuseworks Media

There was one ray of light today for investors in companies linked to property company Blue Chip, with the prospect of funds being made available from one surviving company.

Liquidators have given few details, but said yesterday that some funds may be paid out by May and advised investors not to sell their properties if they could avoid it.

Today, investors at a meeting in Auckland were told that a surviving Blue Chip company may help investigators recover hundreds of millions of dollars, TVNZ reported.

It was unclear what the companies' assets were worth, but investigators had so far uncovered around $58 million worth of debt.

Some of the investors at the meeting claimed to be surviving on food parcels, and many said the Government should have better protected consumers.

Liquidator Jeff Meltzer said some funds could be available in six to eight weeks, and urged investors to hold onto their properties if they could afford to.

However, some people were unable to pay demands to pay what was owing on their investments, some of which had not been built yet.

Liquidators had unrestricted access to records of the Blue Chip company that handled hundreds of millions of dollars.

"I can't say it gives hope of recovery. What it does is it gives us the opportunity of answering the question `where did the money go?' Once we understand where the money went, the next question is, what is the ability to recover money," Mr Meltzer told TVNZ.

Blue Chip invested in housing and property developments on behalf of individuals, some of whom are reported to have had to sell their own homes to meet mortgage repayments.

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