No access to Kawarau Falls papers
JOHN EDENS IN QUEENSTOWN
The chief High Court judge has declined an application for access to documents related to the beleaguered companies behind the $1 billion Kawarau Falls development in Queenstown.
Justice Helen Winkelmann in the High Court in Auckland declined an application on behalf of 67 parties for access to documents in three proceedings involving the companies behind stages one, two and three.
A separate final receivers' report said the firms behind stage one of the three-stage build owe the Bank of Scotland International $156.2 million – almost $40m more than the $117m owed when Melview (Kawarau Falls Station) Investments and Melview (Kawarau Falls Station) Developments were placed in receivership with KordaMentha.
The receivers' appointment ceased in March, when they were replaced by BDO Auckland.
Court documents say Melview Investments and the Bank of Scotland opposed the document access application, the former saying disclosure was too broad and the bank saying access was inappropriate and irrelevant.
The development at Frankton was built as a $1b resort with 13 different complexes, the court documents said.
In 2007 two parties, GFD and Alan Fall, signed eight sale and purchase agreements with Peninsula Road, the company behind stages two and three.
Peninsula Road bought land, which was transferred to Melview, which in turn deferred to Peninsula to fulfil sale agreements.
Melview was placed in receivership in 2009.
After exchanges between the parties GFD and Fall moved to cancel sale agreements but Melview refused, prompting litigation.
The 67-party court action also related to the sale of the development's stage-one units.
Justice Winkelmann said access to documents was limited given the application was lodged before a substantive hearing.
"The applicants seek access to the entire contents of the court file – far wider access than would be permitted at the substantive hearing phase."
Access was refused.
Meanwhile, the latest receivers' report for Peninsula Road said options for asset disposal were being considered.
Receivers Tim Downes and Richard Simpson say the company, also in liquidation, owes $43.5m to Fortress Credit Corporation in Australia and almost $83.4m was owed to Allied Farmers.
- © Fairfax NZ News