The $13 million failure of property company FCL Holdings (in liquidation) means a planned special housing subdivision at Rolleston near Christchurch is unlikely to proceed in the near future.
FCL entered a purchase agreement in mid-2016 to buy the rural block from interests associated with Dryden Trust and Dean and Barbara Geddes.
Trust representative Ryan Geddes said his family had owned the block for about 20 years and was taking stock of the situation.
Geddes, who is also manager of Savills in Christchurch, said the property with capacity for nearly 900 sections had been taken off the market.
READ MORE: $5.2m shopping complex opens in Rolleston’s Faringdon subdivision
“We’re just waiting. We’ve owned it for 20 years and we don’t want to rush into anything or people make silly mistakes,” Geddes said.
“We’re just an innocent farming family caught up in this,” Geddes said.
The sole shareholder and director of FCL Holdings is Sean Rota who is also the director of a vodka company called Ariki Spirit, one of the only distillers claiming to sourc ingredients from the Pacific for export sales.
Rota has worked in Parliamentary services in the early 2000s and had worked for other ministries on various projects.
In their first report, joint liquidators Steven Khov and Damien Grant said it was unknown if there would be any recovery for creditors.
The unsecured creditors owed $13m include Chelsea Green GP, which was involved in an arrangement to buy the block from FCL.
Other creditors are Dean Gedddes, Dryden Trust and Inland Revenue.
The special housing status would have allowed for 10 per cent of the house and land packages to be sold as affordable housing.
Some purchasers who paid 10 per cent deposits to a lawyer’s trust account are awaiting refunds.