'I can't repay $1.8m', says Ridge

By ANNE GIBSON


Celebrity sports star Matthew Ridge has sworn off property development for life, saying he cannot repay creditors claiming about $1.8 million.

Ridge, 35, the former Kiwis rugby league captain and a panellist in TVOne's Game of Two Halves sports quiz, staved off bankruptcy this week after a last-minute repayment.

Ridge has blamed a builder for his financial problems.

He said he had to sell his partially completed Norfolk Manor apartment project in Remuera during August because of financial troubles caused by the builder.

His company developing the units, Basset Rd, "failed to obtain primary funding as a result of financiers' reservations" about builder Freemont Design and Construction, he said.

He admitted difficulties with two Remuera apartment projects, but said he could do little for people seeking money from him and he had ended for life his involvement in property development.

"I regret the unsuccessful outcome of these efforts, but I am satisfied there is now little more I can do," he said.

"I have the greatest sympathy for the creditors involved in the developments, and can only assure them that I worked very hard and increased my involvement in an endeavour to get the best result for all parties."

Funder Dominion Finance had been paid in full, Ridge said, but no money was available for unsecured creditors.

Ridge told creditors in April that he had liquidated another company M3 voluntarily because it had completed work on apartments at 115 Remuera Rd.

Ridge says he will now concentrate on his Car-Fe vehicle grooming business.

But a group of construction subcontractors claiming $550,000 are fuming.

Their claims are on top of $1.3 million owed by M3 which has little more than $900 cash.

Many subcontractors worked on the Car-Fe carwash businesses, Ridge's Karaka mansion, ex-partner Nicky Watson's parents' house next door and the two blocks of Remuera apartments.

They claim to be owed the money by Basset Rd for months of work and materials supplied for Norfolk Manor.

Freemont is claiming more than $500,000 for work between January and July when director Keith Logie said at least 20 men worked on the site.

"Three levels of concrete and steel structure had been completed by then," he said, "but now it's been sold from beneath us."

Mr Logie say he will take the matter to the Serious Fraud Office, and he is engaging corporate investigators to gather material for his case against Ridge.

He would also lodge a claim with the liquidator for more than $500,000 against Basset Rd.

Problems were partly caused by Ridge leaving Auckland for the West Coast during winter to film the TV series City Celebrities, Country Nobodies, Mr Logie said.

Although work had to continue, people building the units were crying out for money.

"Matthew gave undertakings to people based on his celebrity status, and I feel personally betrayed," Mr Logie said yesterday.

On Thursday, Basset Rd - a company registered in April last year - was put into voluntary liquidation.

It is now in the hands of corporate undertaker Brendon Gibson of Ferrier Hodgson who will issue a detailed report on what went wrong by early next month.

Basset Rd is 95 per cent owned by Ridge's Greymouth-registered company, MJR, and 5 per cent by him directly.

M3, another property development company of which Ridge is the sole director, was registered in May 2002 and went into liquidation in April this year owing $1.3 million.

The Inland Revenue Department wants $500,000 and $300,000 is owed to trade creditors.

M3 was involved in another Auckland apartment project at 115 Remuera Rd.

The success of one creditor this week has given little hope to others.

David Worley, chief executive of Placemakers, said yesterday that a last-minute $25,000 payment arrived just before bankruptcy court action against Ridge to recover the money.

"He's paid up the $22,000 plus some costs," Mr Worley said.

The money was for building supplies from the Mt Wellington Placemakers store for Norfolk Manor.

Architect Robert Cunningham of Cunningham & Partners said his firm designed Norfolk Manor to be a tasteful addition to an area renowned for stately large homes built in the late 1800s.

His plan for a two-level, 12-unit apartment block featured a steeply pitched rooftop, columns, verandas, porches and other classical features. A $30,000 debt remains outstanding for the plans.

Mr Cunningham has given up chasing the payment, saying Ridge has not returned phone calls or responded to letters demanding money.

"He's a role model for a whole bunch of young people and he's just made a muck of his life and hurt a lot of people in terms of his business deals," he said yesterday.

Cunningham and Partners also designed Car-Fe at Greenlane and Takapuna, and units at 115 Remuera Rd.

What went wrong

* M3, Matthew Ridge's property development firm, collapsed in April.

* Now another of his companies, Basset Rd, has gone into liquidation.

* An initial report will be issued within 20 working days.

* Creditors say they will be claiming more than $550,000. A detailed report on the M3 failure said it has $941.89 "funds on hand".

* But it owed creditors and shareholders $1,363,315.

* M3 developed apartments at 115 Remuera Rd.

* Basset Rd developed apartments on the Bassett/Remuera Rd corner.