Gisborne, Dec 31 NZPA - The developers of the luxury Quayside apartment complex in Whakatane have left a debt of almost $15 million, according to receivers.
Failed company Quayside Trustee's debts exceed $14.7m, too high to be offset by the sale of unsold apartments, which have been marked down substantially in a saturated Whakatane property market.
Twenty-nine of the 43 apartments in the George Street complex remain unsold. They are being offered for sale at an average price of $380,000, or $11m for the lot. Prices have been reduced by $100,000 and more.
Secured creditors are the ANZ Bank and Fidelity Finance, which were owed $10.8m and $4.0m respectively when receivers Andrew McKay and John Cregton of Corporate Finance were appointed on September 8.
At that time, the receivers said preferential creditors -- which include Inland Revenue and employees -- were owed $1.5m, while unsecured creditors were estimated to be owed $1.6m.
It was unlikely there would be sufficient funds to meet the claims of unsecured creditors, they said.
Between the date of their appointment and November 5, the receivers obtained $191,000 as a refund from Whakatane District Council for Quayside Trustee's development contribution, including interest and GST.
Deloitte's court-ordered liquidation report on behalf of all creditors showed Quayside debts had been reduced from nearly $18m to $14.7m by October 14.
Quayside Trustee was incorporated in 2005 with three shareholders -- accountant Greg Robison, developer John McColl and architect Mark Tatton, who designed the Quayside complex.
The apartment complex was finished in November 2009, about a year behind schedule.
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