A Blenheim property development company has been forced to put its Alabama Rd property on the market after racking up more than $3.7 million debt and going into receivership.
Receivers Stephen Tubbs and Colin Gower of BDO Christchurch were appointed for J & R K De Castro on July 18, according to the Companies Office website.
According to the summary of creditors, as at July 18, J & R K De Castro owed $3,736,344. Secured creditors ANZ Bank are due $3,563,770, while unsecured creditors are owed $32, 482. The company has outstanding payments of $130,000 to preferential creditors Inland Revenue and $10,092 to employees.
Mr Tubbs said his firm would not comment on the receivership.
The first receivers' report, dated September 17, outlined the company's primary assets, which are pre-appointment book debts, garlic stock, an agricultural plant and equipment and two land blocks in Blenheim. The parcel of 24 hectares of land at Alabama Rd is now on the market.
The directors of J & R K De Castro are Stephen de Castro and Geoffrey de Castro, according the Companies website.
There are six shareholders allocated among Stephen de Castro, Geoffrey de Castro, Sharon de Castro, Margaret de Castro, and Annemarie de Castro.
This story has been updated from the original
The Marlborough Express