Bella Vista development liquidators seek $4.1m

The Bella Vista Housing Development. Photo: RNZ/Eva Corlett.

Creditors are claiming $4.1 million from the failed Bella Vista Homes developmentin Tauranga.

But the first report by a new team of liquidators showed there was just $28 on hand at the moment to pay them back.

Unsecured creditors were claiming $3.4m and the IRD $679,000.

Liquidators Rhys Cain and Rees Logan warned the amount could rise as more claims came in.

They planned to try to recover what was owed, the report said, including by taking legal action against former directors and shareholders, and companies they did deals with shortly before Bella Vista was liquidated.

Several transactions took place that "had the effect of eliminating balances owed by these related companies at a time the company was insolvent", the report said.

The liquidators were waiting for legal advice about what to do next.

"It is not practicable at this stage to provide an estimated date for the completion of the liquidation or an estimated payout to unsecured creditors."

The former liquidators were paid $21,000 in fees between November 2017 and January 2018, the report showed.

Tauranga City Council pledged to buy the 21 homes after it signed off on the shoddy building work.

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3 comments

BOTTOM LINE IS -

Posted on 28-06-2018 20:50 | By The Caveman

That the Company Director of the Bella Vista was TRADING / RUNNING the company, when it was TOTALLY INSOLVENT - and no whatever spin he would like to put on it HE KNEW IT!! He should be banned from ever having an interest in or managing another building company. If he is not, then NZ law is C _ _ P, and designed to allow this type of totally dishonest operation. He built C _ _ P non-compliant houses and had NO FUNDS to pay the tradies !! Seems to me that he should be looking at a bit of time behind bars. Will be very interesting to see what the relevant Government Departments do in this case. OH and finally the REAL BIG QUESTION MUST BE


AND FINALLY

Posted on 28-06-2018 20:54 | By The Caveman

The real big question MUST BE ----- WHO were the TCC building inspectors that SIGNED OFF the various stages of the builds ?? NAME AND SHAME THEM - they are going to cost the TCC ratepayers MILLIONS. They should NEVER be allowed to work in the building inspection "industry" again.


Fraud

Posted on 28-06-2018 20:58 | By Craven Moorehead

Said it before and I'll say it again. The business buyout was clearly designed to squirrel away money that was owed to creditors. What worries me is that the Police and SFO are doing nothing. Criminals need to be brought to court. Typical Kiwi too hard basket mentality.


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