The land earmarked for stages two and three of the Kawarau Falls Station development, worth almost $85 million, could be up for sale as receivers try to repay almost $134.4 million owed to creditors.
Peninsula Road Ltd, owned by Nigel McKenna of the Melview Group, was placed in receivership on March 2 and in liquidation on March 24.
The land, next to partially completed stage one, has not been built on.
The first report of receiver Tim Downes, of Grant Thornton, was released yesterday.
"Since our appointment we have not disposed of any property of the company. We are currently in the process of assessing our options for disposal of the receivership property," it says.
Grant Thornton was appointed receiver of the company by first mortgagee Fortress Credit Corp, which is owed $42.5 million.
"Our appointment arose after the company failed to fulfil its obligation for repayment of funds loaned," the report says.
Other creditors include Allied Farmers, whose loan to Peninsula Rd was $76.3 million but could reach up to $83.4 million.
Allied Farmers had written down $99 million of the debt it had taken over from Hanover Finance because of the unlikelihood of stage two and three being completed after stage one was put in receivership.
The Inland Revenue Department was owed $17,204 as a preferred creditor and $99,092 as an unsecured creditor.
Fifty-four unsecured trade creditors were owed $4.3 million.
"Related-party loans" - loans to the company by Mr McKenna's other companies - totalled $11.1 million.
Assets included the land at Kawarau Falls, worth $84.94 million. However, the report says the realised value of the land is unknown.
It was also owed $7.2 million in "related-party loans".
The receivers had employed legal counsel and a quantity surveyor to assist in the receivership. They had also contacted the Inland Revenue Department requesting a reduction of its claim.
Meanwhile, stage one is due to be completed by August, with the two hotels opening in September.
Grant Graham, of KordaMentha, receiver of the two stage-one companies, has refused to confirm who its "preferred operator" is for the two stage-one hotels.
Hilton Hotels has also refused to confirm if it interested in the site, despite advertising for two management positions for a "Hilton Queenstown" on the shores of Lake Wakatipu.
