Lenders to Landco, one of the country's largest property development companies, half owned by the Todd family - the country's wealthiest family - could be left high and dry, according to the National Business Review today.
The company was put up for sale in November, with holdings then
valued at over $1 billion, including 50ha at a Mt Wellington, Auckland quarry, a 178ha site in Long Bay, and a 268ha vineyard, Marlborough Bankhouse, in Waihopai Valley.
NBR said it understood if no sale proceeds, other options were Greg Olliver selling his 50.5 per cent stake to the Todds, or the company being put into receivership.
Landco spokesman Dennis Lynch dismissed the possibility of receivership.
Property finance company St Laurence, which last month froze repayments to its debenture holders, and Fortress Credit Corp, which specialises in lending to stricken companies, are among Landco's lenders.
NBR quoted an unnamed source as saying Fortress had lent Landco $50 million while St Laurence had lent $20m. BNZ, Westpac and Commonwealth Bank were named as other lenders.
Landco's flagship Long Bay, Auckland site, where it wants consents for 3200 residential properties, is held up in the Environment Court partly because the local council wants to restrict the project.
- NZPA
