Blue Chip delays statement

Structured residential property investor Blue Chip Financial Solutions now says it will be next week before it issues a statement on its situation.

Chairman Julian Gosse said yesterday that a statement would be issued "certainly by Tuesday, hopefully by Monday". On Thursday Mr Gosse had said he hoped this statement would be out yesterday. He was not able to give any detail of what it might say.

The company moved its sharemarket listing to Australia a couple of years ago. The New Zealand operations of Blue Chip were put into a franchising operation in September.

On Tuesday the company halted trading of its shares, pending the announcement, but then it moved to a full suspension of quotation of the shares on Thursday.

This week, 19 companies associated with the franchise operations were put into liquidation. Thousands of Blue Chip investors are now unsure of the fate of their money.

Liquidator Jeff Meltzer said yesterday he was pleased with the progress made this week. He is seeking High Court approval, however, to extend the amount of time he has to file his first report to creditors.

The statutory requirement is to have such a report filed within five working day, but Mr Meltzer said this was not possible given the great complexity involved with assessing the 19 companies. Investors and creditors were being sent letters this weekend and Mr Meltzer hoped to have the report to them in about two weeks, with a creditors' meeting to follow in late March.

Property investor and consultant Olly Newland has called for all the Blue Chip-related companies to be put into statutory management by the Government.

However, Commerce Minister Lianne Dalziel said liquidation of the companies appeared to be the appropriate process.

- © Fairfax NZ News