Kawarau Falls Station receivers are reportedly paying bust developer Nigel McKenna’s Queenstown company Peninsula Road $5000 daily for construction access.
National Business Review reports receivers of two former McKenna companies, which are completing construction of stage one of the KFS hotel/apartment complex, will have paid Peninsula Road about $950,000 by the time work finishes in mid-May.
According to a High Court judgment, Peninsula Road last October threatened to ban those companies from accessing their site via its land.
The land, earmarked for stage two and three, is off State Highway 6 by the Kawarau Falls bridge – and used by workers and construction companies.
It also contains stage one infrastructure like piping. The two KFS companies in receivership applied to the High Court for an interim injunction to avert the ban.
In his decision, Justice Hugh Williams states: “There seems to be every right for Peninsula as the landowner to take steps to prevent the use of its land by others, just as any landowner may do.”
The judge awarded the receivers’ companies a two-week injunction only, with both parties then ordered to attend a settlement conference – where agreement for Peninsula Road to to receive $5000 a day was presumably reached.
The judge noted that once stage one is completed, access will be off Peninsula Rd.
McKenna’s stage one companies were placed in receivership by Bank of Scotland International last May, which was concerned payments on its $117 million loan weren’t up to date – the bank has since lent another $63m to allow construction to continue.
Receivers this month stated unsecured creditors were owed about $4.9m, but it was unlikely any funds would be available.