Washdyke problems sorted - developer

A Timaru developer is reasonably confident the threat of liquidation will not stop a commercial project going ahead in Washdyke.

North Park Property and Gazelle Property Investments faced trouble after Rooney Earthmoving applied to have the two companies put into liquidation on September 9.

Two notices appeared in The Timaru Herald this week concerning the applications and a hearing on November 26.

However, Noel Fitzgerald, the director of both companies, said the matter had now been privately "resolved without the help of banks".

"The banks have closed up on all developers," he said. "Eighteen months ago banks would give you an umbrella on a hot day but when it starts to rain they won't support you."

North Park Property has been involved in a number of realised and proposed developments in Washdyke. Mr Fitzgerald last year revealed plans to develop a 5000-square-metre site on the corner of Washdyke Flat Road and State Highway 1.

Eventually, the development was to include hotel or motel accommodation, a drive-through liquor store, a Night and Day, a garden outlet and a Subway.

Mr Fitzgerald said that an announcement about start dates for a Washdyke project would be made next week.

While a financial solution may have been found for North Park Property and Gazelle Property Investments, not every company Mr Fitzgerald has had involvement with has faired as well.

Wilson Bay Investments and Benvenue Properties were put into liquidation on July 7. The Companies Office lists Mr Fitzgerald as the sole director of both companies.

In their first liquidator's report Iain Andrew Nellies and Wayne John Deuchrass of Insolvency Management expected the liquidation to be finalised by February 2010.

The total amount owing to Wilson Bay creditors was $768,139.22, while the total amount owing to Benvenue Properties was $6268.16.

Mr Nellies said a Queenstown property owned by Wilson Bay had failed to sell in a mortgagee sale and was still on the market.

Mr Fitzgerald told the Herald yesterday he had been a part-shareholder but had since sold his shares in Wilson Bay Investments.

- © Fairfax NZ News