KEY POINTS:
Three companies which collect rent for investors in troubled property specialist Blue Chip have been placed in liquidation, a leading insolvency expert confirmed yesterday.
Jeff Meltzer, an Auckland-based liquidator, has met with representatives of the companies but said he was still waiting for confirmation that he had been
appointed liquidator of Bribanc Property Group, ART Apartments and Auckland Residential Tenancies.
Neil Bell and Rikki Flowerday, who hold directorships in these companies, had recommended voluntary liquidation to the shareholders, Meltzer said. The shareholders approved that. The liquidation occurred on Friday, Meltzer said.
Bribanc's shareholder is another company, Mead. Lancewood is the shareholder of the other two companies, Meltzer said.
He is yet to undertake a full audit of the companies but said his initial investigations showed Bribanc acted as a property manager while the other two companies received funds from short-stay and long-stay tenants.
Meltzer is required by law to issue an initial report into the companies within five working days of being appointed a liquidator.
He said he would probably have a report written by the end of this week.
The Companies Office had yet to be notified of the liquidations and public notices were yet to be placed in newspapers, Meltzer said. He also had five working days to complete this task.
Blue Chip has thousands of investors who bought investment properties. But late last year they began to complain that their rent had stopped. This coincided with a major restructuring of Blue Chip which saw the business being franchised out and staff at Blue Chip's head office on Queen St being cut by about half.
Meltzer said the situation might not be grim and he warned against leaping to conclusions. "I can't comment on the financial position other than being told there's a belief from the directors that there will not be significant shortfalls," he said.
He plans a creditors' meeting, even though not required by law to do so. "I've requested a creditors' meeting be held because of the public interest generated over the past couple of weeks. It's the only way to effectively communicate with creditors," he said.
But he is yet to ascertain the scale of the businesses.
"I don't know the spread of creditors, whether they're Auckland-based or elsewhere," he said.
Meltzer said large-scale liquidations required special measure to include all creditors. Video linkups for those outside Auckland might be of assistance, he said. "I'd be very keen to ensure all creditors would have the ability to join in the meeting."
He wanted to discourage creditors from contacting him directly, saying the best thing they could do now was wait to for his first report. "I would expect there's a lot of frustration out there," he said.
Jonathan Knox, Blue Chip's marketing communications chief, could not be reached for comment on the liquidations yesterday.
Mark Bryers, Blue Chip's executive director and a founder, last week distanced himself from problems in New Zealand saying the business here had been franchised out. Blue Chip Financial Solutions is listed on the Australian Stock Exchange.
Neither Bell nor Flowerday could be reached for comment.