Blue Chip process frustrates lawyers

Jeff Meltzer. Photo / Herald on Sunday

Two lawyers acting for more than 300 Blue Chip investors say they are aghast at the scale of the task and are angry about what they say is a distinct lack of Government aid for investors.

Many of them are elderly and are women - often widows faced with financial disaster after investing with the failed Auckland apartment specialist, say Paul Dale and Daniel Grove.

They say the task before them is overwhelmingly complicated and they have started many courses of action. But they are increasingly disenchanted with the liquidation process and the Government's lack of response.

Liquidators yesterday challenged the criticism.

Arron Heath, at Meltzer Mason Heath, said action was taking place. A six-monthly update was due to be issued next month on the first Blue Chip companies to go into liquidation earlier this year, he said.

"But it's too early to say quite frankly what - we have not determined the content of those reports," Heath said.

Jeff Meltzer said earlier this year he was in close touch with the Commerce Commission, Securities Commission, Companies Office and Serious Fraud Office over Blue Chip.

Commerce Minister Lianne Dalziel has rejected calls for statutory management and backed the liquidators' approach.

But Dale and Grove are demanding to know what action the liquidators have taken.

Although the Government agencies have revealed investigations, the barristers say they are yet to see any real progress or proper assistance for the investors.

"I'd like to see something from the liquidators. This is a massive task. Daniel and I are run off our feet. There should be legal aid for investors and a law firm appointed by the Government as statutory manager which we would assist," Dale said yesterday.

Grove says his firm has been greeted only with hostility from the liquidators so far.

"We requested a document and were told we needed a court order."

The barristers want Blue Chip directors examined and specific questions put to them about developments in St Martins Lane, Emily Place and Turner St, where apartments appear to have been sold twice.

"How is it that that could happen?" Dale asked.

The barristers listed their action so far as: