A Queenstown development company with big ideas for a $120 million Arthurs Point complex has gone bust owing $13.7m.
The first liquidator’s report on Mangahou Holdings makes sorry reading – even preferential and secured creditors are highly unlikely to be paid, independent liquidators Craig Melhuish and Keiran Horne predict.
Inland Revenue wound Mangahou up after the company fell $200,000 behind.
Lender Vision Securities – itself in receivership – is the big loser, owed $13.4m. Unsecured creditors will also whistle for $58,000.
Mangahou directors were Queenstowners Mark Dickson, James Macalister and Bas Smith.
The trio were promoting a three-storey hotel, apartment and retail complex on the old Cattledrome and Southern Lakes English College site at Arthurs Point.
Prominent architects Warren & Mahoney had done design work.
Armed with consents and a site valuation of $7.55m plus GST, Mangahou director Smith told Mountain Scene in 2008 they were looking for an equity investor.
The liquidators say the site was sold at a loss last year.