Tony Tay's Auckland-based property development company has been placed into liquidation but the collapse will not affect his film production business, in which the Waitakere City Council is a major shareholder, mayor Bob Harvey said yesterday.
"This is a glitch for Mr Tay but not for us," Harvey said.
"Thiswill have no effect whatsoever on the film studio. The future of the studios is guaranteed. We are fully booked for the next three years. It's [the studios] a winner for the region and New Zealand."
Chris Horton, of Chris Horton Associates, was appointed liquidator of Tony Tay Group on June 29.
Another of Tay's companies, Tony Tay and Associates, was placed into liquidation on May 20.
He is also one of two directors of Tony Tay Film. A 15 per cent stake of that company is owned by his trust, the other 85 per cent is owned by Rehoboth Entertainment, of which Kieran Fitzsimmons is the director.
Horton said Tay's property development company collapsed because of tough economic conditions in the sector and tight financial markets, and was unlikely to affect the film business, of which he is now a minority shareholder.
Harvey said there would be "no downsize" for the council because of the liquidation.
He said the council's investment in film production had been extremely successful, so much so that the production of Where the Wild Things Are was turned away because the studios were fully booked.
Harvey said the studios brought millions of dollars to the region as resources, such as timber used to develop sets, were locally sourced.
"The equipment, the hire, lighting, wood, all brings in money. Wood bills often reach in the $400,000 to $500,000, this all goes to local timber yards. This has been seriously good [for the council]."
But the downturn has had an affect on Tay, whose company headquarters were put up for mortgagee sale by ASB last month.
The offices at 540 Great South Rd, Greenlane, were owned and mainly occupied by the Tony Tay Group, and had an annual rent roll of $110,000.
