A Christchurch developer and the owner of a Velvet Burger company, which was to have leased space in a $140million building in the Christchurch CBD have reached a settlement out of court.
While Velvet Burger had a leasing contract, it did not open shop, claiming it could terminate the lease if the Avon riverside development was not ready for occupation.
There were delays in The Terrace development, construction of which began in 2013. Most hospitality operators were moving in by December 2017, although several months later than expected for some.
The Terrace Christchurch Ltd, whose sole director and shareholder is Antony Gough, of Christchurch, had sought to have the non-trading Velvet Burger Terrace Ltd placed in liquidation. The latter's sole director is James Arnott.
In the High Court at Dunedin yesterday, by video-link before Associate Judge Dale Lester, agency legal counsel for The Terrace said the issue had been resolved.
"They need some time to settle," he said.
The settlement, and whose favour it was in, was not disclosed in court.
Messages were left for Mr Gough and Mr Arnott, but neither responded.
The matter is to be called again in the High Court next month, on expectation the settlement would be confirmed, counsel for The Terrace said.
