Receivership of three companies owned by St Clair developer Steven Chittock continues, following the recent withdrawal of voluntary administration proceedings over the companies.
The companies covered by receivership proceedings, overseen by Dunedin-based Insolvency Management Ltd, are White Island Investments, White Island Properties and St Clair Village Hotels.
Mr Chittock placed the companies into voluntary administration in mid-August, hoping a $20 million proposal would attract fresh equity partners, but days later, the receivers acting for failed South Canterbury Finance forced the companies into receivership over a $1.5 million debt.
Mr Chittock had, in the past 14 years, developed various properties within the Esplanade block at St Clair Beach, including serviced apartments, motels, a restaurant-cafe and co-partnered construction of the boutique St Clair Beach Resort hotel. One of his five Esplanade properties, valued at $4.4 million, recently sold for about $400,000.
Liquidator Iain Nellies, of Insolvency Management, yesterday said a second creditors meeting which should have taken place under the voluntary administration and at which a "deed of arrangement'' with creditors would have been presented, had not gone ahead.
"The [voluntary] administration at that point then came to an end,'' Mr Nellies said.
Under the voluntary administration it was reported Mr Chittock had assets valued at $5 million, based on business cashflows, valuations and properties, but had about $5 million in debt.
When asked yesterday about investigations into the overall debt, Mr Nellies said he was principally acting for the South Canterbury's receivers over the $1.5 million debt, but was "mindful'' the liquidation process might be subject to other creditor claims on assets.
South Canterbury was considered the major creditor among about 20, who initially met the voluntary administrators in late-August. Mr Nellies said the liquidator's first report would possibly be filed by early November.
