Around 4000 investors have bought more than 2000 properties through Blue Chip-related companies.
They are mostly baby boomers hoping to generate extra cash for their retirement, who used the equity in their homes to enter the Blue Chip structured property investment scheme.
The properties are newly developed apartment
and townhouse complexes in various parts of the country. Many owners are owed over two months' rent. But potentially those worst off are people who have put down deposits on properties not yet built.
Blue Chip first hit the headlines in 2004 when it listed on the stock exchange via a backdoor listing. It was the first stock to deal only in residential real estate.
However by late 2006, its New Zealand share price was languishing and the company said it would leave the NZX and be listed only across the Tasman.
Last spring it announced a half-year loss of $2.6 million, a halving of staff numbers at head office, and a decentralised administration system through a network of licencees.
Early this week, three Blue Chip-associated companies went into liquidation.
By yesterday, the liquidator had added 15 more to his tally, and another company, Blue Sky Holdings Ltd which is wholly owned by Robert Bangerter, was also in liquidation.
Click here to see a diagram of Blue Chips structure