Payment for bondholders

Bondholders in the troubled Christchurch Park Terrace apartments will receive an initial payment of 51c in the dollar, and are likely to receive up to 70 per cent of their investment.

Tower Trust general manager Glen Clark said the sale of the development, near Hagley Park, to Pacific Animal Remedies meant bondholders would be paid this week.

Court action against people who bought pre-sold apartments and reneged on payment would result in a further payment to bondholders, probably bringing the total to about 70c of every dollar invested, Clark said.

Bondholders should receive the payment within three months.

Tower has appointed Ferrier Hodgson as receivers to Pacific Properties, which issued the bonds to fund the 105-apartment development.

- NZPA