Blue Chip NZ Ltd placed in liquidation

Blue Chip New Zealand Ltd has been placed in liquidation today, as outlined by parent company Northern Crest Investments Ltd last Thursday.

In a statement Meltzer Mason Heath's Jeff Meltzer, Arron Heath and Lloyd Hayward said they had been appointed liquidators.

The liquidators, who are also liquidators of 20 other companies associated with the New Zealand franchise operations of Blue Chip, said their first report to creditors would be available within five working days.

So far at least $70 million is owed to about 3000 investors on this side of the Tasman.

Australian-listed Blue Chip Financial Solutions last week changed its name - to Northern Crest Investments. It also said it had received "interim financing" and planned to raise $A4 million from an issue of shares.

Chairman Julian Gosse said the name change was to "quarantine the listed company from the reputation associated with the cancellation of the New Zealand franchise, which operated under the Blue Chip brand".

Northern Crest formerly directly owned and controlled all the New Zealand operations, but put these in the hands of a franchise arrangement toward the end of last year. It was not long after that that investors in Blue Chip property started reporting problems getting rental payments. Then earlier this year various companies began being placed in liquidation.

Mr Gosse said that Blue Chip New Zealand, which previously performed a centralised treasury function, had effectively ceased trading, so its liquidation would not affect Northern Crest.

Northern Crest had a number of other trading subsidiaries in New Zealand unaffected by the liquidation of the New Zealand franchise and these would continue to operate.

"Their primary function over the next 12 months will be to collect receivables for the business," Mr Gosse said.

- © Fairfax NZ News