Mide Limited collapses

20th Blue Chip-linked company to be liquidated

Another key part of the Blue Chip New Zealand franchise network has collapsed owing $11.6 million that the liquidators say won't be recoverable.

Mide Limited is the 20th Blue Chip linked company to be liquidated. It was formed in August last year to act as the trading company for the master franchise in this country, which is called Diem Limited. According to company's office records Diem is still trading.

Liquidators Meltzer Mason Heath say in a report that Mide had no income of its own and its cash receipts were in the form of advances from other group companies.

"When these other group companies began to experience cash flow difficulties toward the end of 2007 this had a corresponding impact on Mide's liquidity and it also began to experience difficulties."

The liquidators say Mide has no realisable assets and as it is unlikely there will be a distribution to creditors there will be no creditors meeting held.

Creditors meetings for the other 19 companies in liquidation are planned, probably late this month.

The Blue Chip operations in New Zealand were placed in the hands of franchise companies to separate the Kiwi operations from those of Blue Chip Financial Solutions, founded by Mark Bryers.

BCF was originally sharemarket-listed in New Zealand then moved to Australia. Its shares have been suspended from trading since February 14 "pending an announcement".

- © Fairfax NZ News