Unfinished Grays development in limbo

UNCERTAIN FUTURE: The Grays development in Ngongotaha. PHOTO/FILE A-150514SP4

With no buyer yet found for Grays Funeral Services, its receivers and bank will meet next week to determine its future.

The Rotorua funeral home went into receivership in June, leaving its new development alongside Kauae Cemetery on Ngongotaha Rd unfinished.

Work had ground to a halt after overruns added $1.9 million to the original $1.38 million budget for the project.

Receivers BDO Tauranga advertised the business for sale soon afterwards, with the hope a buyer would complete the development.

In its first report released earlier this month, BDO said it was negotiating with interested parties.

Yesterday, joint receiver Thomas Rodewald told the Rotorua Daily Post there had been no progress at this stage.

"We're having a meeting with the bank next week, [when] we will make a final decision on where to from here," he said.

He would not comment on what the possible outcomes may be.

The report shows Grays owes around $2 million, including $1.2 million to the Bank of New Zealand.

There is unlikely to be any money left to pay unsecured creditors, whose claims as of July 30 totalled $671,584, the report says.

The company's two vintage vehicles have been offered for sale, however.

Mr Rodewald said an international tender was about to start, but he was unable to comment on their potential value.