Bondholders bite nails over titles

By Chris Hutching

Friday 26th May 2000

Ballantyne Property bondholders remain hopeful of a financial bailout in spite of a delayed initial payment of $250,000.

The bondholders recently accepted a rescue package in which Lombard Finance and Christchurch construction magnate Buzz March promised repayment of their $8 million capital with an initial payment on April 19.

Investors will forgive $4 million of interest they were earlier offered in the development plans of John Bourke for residential sections and an 18-hole golf course at Katikati near Tauranga.

According to Lombard Finance director Michael Reeves the money is being held in trust by a law firm and the timetable for subsequent payments remains in place.

The immediate problem was Mr March has been unable to obtain unencumbered titles from Mr Bourke over all properties in the development. There are seven caveats which relate to debts owed to creditors in the stalled development.

Tower Trust general manager Glenn Clark, as trustee of the project, says the parties involved in the bailout all knew the position when they made their offer to bondholders.

If the Katikati property is sold in a receivership sale it is expected to realise about $3 million less.

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