Blue Chip action suspended

Last updated 05:00 02/02/2013

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Legal action against directors and auditors of collapsed property scheme the Blue Chip Group appears unlikely to proceed after being indefinitely suspended.

Blue Chip liquidators Meltzer Mason Health said a lack of litigation funding led to the lawsuit filed a year ago being suspended.

Liquidator Jeff Meltzer said the move was disappointing, but secured funding of $2.5 million was needed to progress the case through to a High Court hearing.

A claim was filed by the liquidators in January 2012 against Blue Chip directors - including former cabinet ministers Wyatt Creech and John Luxton, and scheme founder Mark Bryers - seeking $40m.

Blue Chip collapsed in February 2008 owing an estimated $80m.

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