C1 tower company seeks help from administrator

The troubled company building the South Island's tallest building has gone into administration.

AMC Construction, which was building the C1 tower in Gloucester Street, has appointed Christchurch accountant Andrew Oorschoot as administrator.

The procedure gives the company five weeks to allow Oorschoot to assess its financial position and suggest options. Creditors will vote on the options, which include putting the company into liquidation.

The company is believed to owe about $10 million.

A new company called South Island Construction has been formed to continue with the C1 Tower.

An application to liquidate AMC, lodged by R.A. Shearing Contractors, which is owned by Christchurch City Councillor Bob Shearing, was adjourned to November 17 when it was called in the High Court in Christchurch yesterday.

Meanwhile, the man behind the luxury Parkbridge Apartments in Park Terrace, central Christchurch, has been declared bankrupt.

Murray Blackmore, the husband of former city councillor Paddy Austin, became another casualty of the failing property market yesterday.

He was declared bankrupt on an application by PMIT Nominees.

The High Court in Christchurch was not told how much Blackmore owes PMIT, but an amount of $4,500,762 owed to Mascot Finance was mentioned.

Blackmore's partner in the project, Sharon Bartlett, was declared bankrupt last month. Her partner, Dennis Thompson, has admitted that although she is the director of many companies in which they are both involved, he is the true operator of them.

Park Terrace Apartments Ltd was put into liquidation in July. A subsequent liquidator's report shows it has unsecured creditors of $1.28m and total creditors of $1.45m.

This does not include amounts owing under mortgages over the 19 units, most of which are encumbered by two mortgages. Some have been sold by the mortgagees.

The liquidator's report said the company had sold only two units at the time of liquidation.

- © Fairfax NZ News