Investors in the disastrous Blue Chip group of companies stand to get some satisfaction after yesterday's liquidation of Northern Crest Investments.
The forced demise of what was once Blue Chip Financial Solutions and Blue Chip NZ could throw light on tentacles of bankrupt Mark Bryers' doomed businesses.
Daniel Grove,
the Chancery St lawyer working with Paul Dale who for years fought for justice for hundreds of investors caught in Blue Chip's trap, yesterday succeeded where others had failed, forcing the company down.
Acting for businessman Ross Haywood, Grove went to the High Court at Auckland seeking to enforce a statutory demand for A$142,000 ($186,000) and the court ruled Northern Crest should go under.
Grove said the result should satisfy investors and perhaps creditors too because now a full and thorough investigation of at least one part of the Blue Chip empire can be mounted. He does not know how much money is involved.
"Hopefully now we can get to the crux of how it all went on for so long, racking up so much lost money, in the tens of millions," Grove said.
Anthony McCullagh and Stephen Lawrence of PKF Corporate Recovery were appointed Northern Crest's liquidators and Grove said investigations could be telling.
Northern Crest is listed on ASX but Lawrence said yesterday that he doubted it would continue to be listed.
The company says it "creates and licenses intellectual property to third-party acquirers and distributors of property, who provide their clients with an approach to property investment which focuses on long-term passive income streams and wealth creation".
Marc Wilson, Northern Crest's chairman, issued a preliminary annual report for the year to March 31, 2011 to the ASX declaring an after-tax loss of A$2.9 million.
"The company is currently completing a capital raising for which it has received firm commitments for A$7 million. This will strengthen the balance sheet, allow the settlement of all current liabilities and position the company to go forward," Wilson predicted on May 31.
The Blue Chip property scheme collapsed in 2008, owing about 3000 investors more than $80 million.
NORTHERN CREST INVESTMENTS
Previously:
* Blue Chip Financial Solutions.
* Blue Chip NZ.
* Newcall Group.
* The New Zealand Salmon Company.
Source: Companies Office
