Does your bowls club have investments with Dorchester?
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Bowls clubs and thousands of members have been left in financial limbo by a major finance company's woes.
Dorchester Pacific, which has had a long-running sponsorship deal with Bowls New Zealand, said last week it would ask investors to approve a "deferred repayment plan".
It is the 24th
finance company in two years to run into difficulties, and the third in less than a week.
Bowls NZ chief executive Kerry Clark said the organisation had invested $50,000 in the property-focused lender, and many of its clubs and centres had money with it.
It is understood local bowls clubs would get half a per cent per year as a "brokerage commission" on such investments.
Dorchester had invested about $9 million over the past 18 years in bowls around New Zealand, sponsoring activities and paying for naming rights to the association's national championships.
Mr Clark said it was "normal business practice" to invest with Dorchester because it was putting "considerable money back into the sport in a sponsorship way".
"Over the years, since this company has had a close association with bowls, the amount invested back into clubs and to centres and the national level in the way of sponsorship ... it's not little."
Mr Clark did not know how many bowlers had invested with Dorchester.
"We publicise its role as our sponsor, and have done for many many years ... the investment that individual members have made with Dorchester equally has grown up over a long period of time.
"We are not financial advisers, nor are we in the role of telling our people that you need to invest."
Bowls NZ's investment came up for renewal in December last year and its risk and audit committee decided to leave the $50,000 with the company.
"It's money we've built up over a number of years," Mr Clark said.
"We're an organisation that looks to not operate in the red, so we use surplus from events or whatever ...
"That is invested and that keeps our individual fees to a lower level than they probably could be because the interest earned on that money goes back into consolidated funds."
Dorchester did not owe the organisation any sponsorship cash.
Bowls North Harbour vice-president Colin Austin told the Herald his organisation had invested thousands with Dorchester, and he understood the company had given itself two years to pay it back.
Some of Bowls North Harbour's 3000 members had also invested.
"It is disappointing because a lot of the bowling clubs had relied so much on Dorchester and they seem a little bit in jeopardy.
"But its only in the early days at the moment ... we just have to keep a cheerful look at things."
Bay of Plenty Bowls president Laurie McLeay said the club had "a little bit" invested with Dorchester, but would not say how much.
Dorchester owes $168 million to debenture stock investors and another $8 million to subordinated note-holders.
It has total assets of $212 million, including $18 million in cash.
The company is seeking to repay investors over a yet-to-be-specified time and plans to continue paying interest.
The repayment plan requires approval from Dorchester's trustees and then from investors.
* Give and take
Dorchester Pacific is a major sponsor of New Zealand bowls.
Last week its finance lending arm, Dorchester Finance, said it would seek the approval of debenture holders and note holders to defer repayment of their principal over two years with interest.
Bowls clubs and individual members have significant amounts tied up in investments with Dorchester.
