Tower Trust examines back-up offer

By Chris Hutching

Friday 23rd June 2000

The trustee for bondholders of the financially troubled Ballantyne Golf and Retirement Resort at Katikati, near Tauranga, has received a back-up offer to replace a rescue package that has fallen over.

Tower Trust's Glenn Clark said he was looking at the back- up offer after Christchurch developer Buzz March pulled out of a refinancing deal agreed to by bondholders owed $8 million in capital. They agreed to forego $4 million in interest.

Mr Clark said the original developer, John Bourke, was also pursuing legal remedies to enforce the refinancing package with Mr March's companies while the back-up offer is being evaluated.

The collapse occurred after Mr March said he could not proceed until he obtained clear title and a high level of security from the trustee.

There are several caveats over titles in the stalled development.

Mr Clark, as trustee, said the security being requested was unreasonable because the only failure to perform on any obligations to the scheme would be a failure on the part of a March-associated company or his financier Lombard Financial Services.

This would limit the recovery rights of bondholders in the event of failure.

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