The bankrupt developer who once had plans to construct the Hilton Queenstown owes creditors more than $58 million following the failure of two of his companies.
In July 2003, Dan McEwan, of Auckland, incorporated Pauanui Properties and bought 3.15ha of land at Frankton and Perkins Rd in Queenstown for a residential development comprising 65 houses.
In November 2003, Mr McEwan incorporated Pounamu Prime Ltd as a special purpose entity to develop a 34-apartment complex on Frankton Rd.
Its assets comprised two residential parcels of land, one lot comprising a block of 34 units, the other a residual lot at one stage earmarked as the site for a Hilton Queenstown.
Pauanui Properties Ltd was the first to get into financial difficulty, with development ceasing as a result of insufficient funds. The company was placed into liquidation in October 2008 and stopped trading.
The final liquidator's report by Grant Burns and Richard Agnew, of PricewaterhouseCoopers, said alternative funding for the development was unavailable and secured creditors Hanover Finance Ltd and Strategic Nominees rejected a proposed restructuring plan.
"Consequently, the development ceased and the company had no cashflow to meet its debts," the report said.
It said land at Frankton and in Perkins Rd was sold in a mortgagee sale and the liquidators were advised there were no surplus funds from the sale.
"An overdrawn shareholder's current account and monies owed by related companies were identified, but a recovery was not possible, as the director was adjudicated bankrupt on 26 February 2009 and related companies were either in liquidation, receivership or struck off from the Companies Office register."
Hanover Finance Ltd and Strategic Nominees Ltd were listed as secured creditors, with a claim for petitioning creditors' costs of $2884.88 received.
Three non-preferential unsecured claims totalling $37,282,398.72 were received.
No distribution was made towards petitioning creditors' costs or non-preferential unsecured creditors.
The company has now been removed from the Register of Companies.
Meanwhile, in April 2009 Pounamu Prime Ltd was placed in receivership, with Grant Graham and Brendon Gibson of KordaMentha appointed receivers.
At the date of receivership, Pounamu Prime owed more than $20 million to the Bank of Scotland (Australia) and more than $7 million to Strategic Finance Ltd, with an unsecured creditor's claim of $201,461.27.
The Inland Revenue Department was owed $1,984,759.40 in respect to its preferential claim for GST.
The receivers fifth report, dated June 16, said 26 apartments had been sold and settled by the receivers, with two apartments under contract.
BOS International (Australia), was now owed about $14 million plus accrued interest as at April 19, while Strategic Finance Ltd was still owed about $7 million.
