Huge debt on Queenstown’s Kawarau Falls development

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Bank of Scotland International’s debt on the Kawarau Falls Station development is $154.8 million.

That figure is revealed in the fifth report by the receivers of developer Nigel McKenna’s companies, Melview (Kawarau Falls Station) Development and Melview (Kawarau Falls Station) Investments.

Receivers Grant Graham and Brendon Gibson, from KordaMentha, were called in two years ago and oversaw the completion of stage one of the Kawarau Falls Station development, recently opened as two Hilton hotels.

The receivers note that construction costs for the six months, November 26 2010, to May 25 2011, totalled $36,480,189.68.

Receivers’ fees and disbursements were $1,246,343.48 and legal fees were $1,192,301.17.

Unsecured creditors are owed about $3.5m but the receivers say it’s unlikely there’ll be any funds available for them.