Apple Fields, trustee squabble over costs

Friday 19th January 2001

By Chris Hutching

Apple Fields and the trustee of the Rural Super Bond Superannuation Scheme are still arguing over who should be billed for the legal and accounting costs of winding up the scheme.

Investors have been repaid about 97% of what they were owed but the final property sale required to satisfy the remainder was delayed by the argument over costs.

Apple Fields says it has received an unconditional offer for the last block of land secured to the scheme but must reach agreement with Tower Trust, which will then transfer the title to the purchaser.

For the past 12 months Tower Trust, as trustee of the scheme, has overseen the sale of properties secured to the scheme, following default by Apple Fields of repayments to bondholders.

But costs of winding up the scheme have topped $1 million and Apple Fields is challenging where they should lie.

Managing director Tom Kain said neither party wished to lose the contract and he believed the issue would be resolved soon.

Like many of the other properties sold, Apple Fields will retain a development interest with a joint venture partner who will buy the property, known as the Noble Block, near Christchurch Airport.

Mr Kain said Apple Fields had joint venture agreements over several blocks of land it previously owned.

The company would work on rezoning the land and share in any profits on sale. He said he had been refining other ideas for the future of the company which will soon be a cashed-up shell with no debt and about $50 million in tax losses available against future profits.

Apple Fields reported a loss for the year ending September 30, 2000 of $3.3 million, an improvement of nearly 50% over the previous year.

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