The property developer, who has built large apartment towers and hotels around New Zealand, is facing demands from banks, financiers and creditors who want millions of dollars back.
His Queenstown hotel development problems surfaced last year, but issues have now spread to other parts of the Melview empire.
KordaMentha, PKF Corporate Recovery & Insolvency, Grant Thornton New Zealand, McGrath Nicol Partners, Chris Horton Associates and Indepth Forensic all have accounting and insolvency crews working to find as much cash as possible.
On November 24, Structured Finance NZ appointed Anthony McCullagh and Steve Lawrence of PKF to Mr McKenna's company, which built the $100 million Holiday Inn in Wellington.
Their first report, on March 10, showed Mr McKenna's company had a deficit of $8,570,674, but it could owe creditors almost double that.
An initial taste of the workings at Melview Featherston Street Ltd (in receivership and liquidation) painted a grim picture, particularly for investors, including a Fletcher Building business and the failed Structured Finance NZ.
Structured Finance is owed $7,665,788 and, according to the company's records, $15,641,797 was due to unsecured creditors, Mr McCullagh and Mr Lawrence wrote.
The Fletcher Construction Group wants final payment for putting up the Holiday Inn.
Structured is one of a raft of finance companies owing about $6 billion. It froze funds in May last year, owing $33 million to 172 investors. Its first payment of 10c in the dollar is due by September 30 and all funds must be paid back by next October or in 2012, depending on the money available.
The Auckland property lender was the last company to go into a moratorium and has yet to begin paying money back to investors. A further 5c in the dollar is due in next March.
Another 45c is forecast to be repaid by October 2011, but directors have the option of extending that to October 2012 without having to go back to investors.
Melview Featherston Street Ltd owns 15 Holiday Inn hotel rooms subject to Fletcher claims, Mr McCullagh and Mr Lawrence wrote.
The company was formed on May 30, 2000, to develop the 17-level 280-room hotel on Featherston St. It opened in 2007 and the company sold all except 15 rooms. Those were subject to an unconditional sale contract, the receivers said.
Another blow to Mr McKenna's extensive property empire is the fall of his company Peninsula Road Ltd (in receivership and liquidation), which owns part of his Kawarau Falls hotel project near Queenstown.
Tim Downes, of Grant Thornton NZ, was appointed a receiver by Fortress.
Mr Downes said Peninsula owned a third of the Kawarau Falls project but he refused to say how much Fortress was owed. That would not be known until his first receivership report, due on May 13. The six-monthly report is due by November 9. Peninsula is wholly owned by Melview Developments Ltd.
Fortress, as first security holder, called in the receivers after Peninsula defaulted on a big loan.
Hanover also funded the Queenstown project and its security has now been taken over by Allied Farmers.
A liquidator from Chris Horton Associates was also appointed to Peninsula last Thursday.
Melview (Kawarau Falls Station) Investments Ltd and Melview (Kawarau Falls Station) Developments Ltd went into receivership in May last year, a bank appointing receivers from KordaMentha, who said in their latest update issued this year that total amounts owed to Bank of Scotland International were $180 million.
NIGEL MCKENNA'S PROJECTS
Work so far -
• Galleria Customhouse shops, Auckland, with Andrew Krukziener.
• Metropolis 40-level apartment tower, also with Mr Krukziener.
• Sebel and Quays hotel/apartments, Viaduct waterfront, $100 million.
• UniLodge student towers near Auckland University, $45 million.
• Beaumont Quarter apartments opposite Victoria Park, Auckland, $100 million.
• Lighter Quay's Westin Hotel, lock and apartments, Auckland, $300 million.
• Quadrant hotel/apartments next to Hyatt at Waterloo Quadrant, Auckland, $100 million.
• Holiday Inn, Wellington, $100 million.
Yet to start or be finished -
• Kawarau Falls resort, 6.4ha hotel project, Queenstown, $1 billion.
• Flat Bush, new Manukau town for 40,000 people, $1 billion.
• McArthur Ridge health resort, Central Otago, $500 million.
• Atlantic City high-rise apartments, US$350 million.
