More than $67 million has been poured into Queenstown's $1 billion Kawarau Falls Station development in the six months after two companies associated with stage one went into receivership.
Melview (Kawarau Falls Station) Development Ltd and Melview (Kawarau Falls Station) Investments Ltd were placed in receivership in May last year by Bank of Scotland International.
The receiver's second report says the two companies owe the bank $180 million, up from the $117 million figure at the time of the receiver's first report in August.
Receiver Grant Graham, of KordaMentha, said in his second report, released this week, the bank had continued to fund the project with a further $62.8 million between May and November last year.
More than $64 million was spent on construction, $1.6 million on receivers' fees and $795,645 on legal fees.
It was unlikely funds would be available to pay the $3.5 million owed to unsecured creditors.
Since the receivership, the companies had settled debt owed to the Inland Revenue Department.
Mr Graham said the receivers were working with all parties involved in the development, including management at the site, to assess options for the companies' assets.
"In the meantime, work continues on the development.
"Pre-sales agreements to sell all properties under stage one of the development were entered into . . . with various parties prior to receivership," he said.
No property had been sold and site work had continued.
Otago University business law lecturer David Sim said it seemed the receivers were trying to complete the development to maximise return for creditors.
"Normally, a receiver would sell all the assets to pay creditors, but the other option is to trade on, which seems to be what [KordaMentha] are trying to do.
"If they sold a half-finished development they would get much less than if it was completed," he said.
The bank would want to recoup as much as possible, so would further fund the development so it could be finished, he said.
It was possible the receivers could "trade out of the difficulties".
"It is not very common, but if the development makes enough money to pay all its creditors, it could be handed back to the shareholders and directors," he said.
