A single residential development failure in Remuera has sent 2 of former All Black & Kiwi league player Matthew Ridge’s companies into liquidation, but he managed to sell the development itself before completion to another developer.
Mr Ridge has ended up as the biggest creditor of both companies, first through shareholder advances, then by paying off project financier Dominion Finance Ltd.
The company developing the Norfolk Manor apartment project on Bassett Rd, M3 Ltd (55% owned by Mr Ridge) went into liquidation in March. Liquidators’ reports show M3 sold the project to a company owned entirely by Ridge interests, Basset Road Ltd, for $2.6 million (excluding gst) in May 2003.
The 2nd report of M3 liquidators John Cregten & Andrew McKay (Corporate Finance Ltd), dated 27 October, showed they had $941 left after their own costs & legal fees to pay creditors claiming $1.363 million (just under $1 million owed to Inland Revenue as a preferential creditor and in shareholder advances, $369,149 to unsecured creditors).
The Basset Road company didn’t fare any better as a developer and, after spending another $2.82 million, sold the project in August to Queen City Property Group Ltd for $5 million (excluding gst), leaving Dominion Finance with a $605,000 shortfall.
The 10 November report of Basset Road liquidators Brendon Gibson & Grant Graham (Ferrier Hodgson) shows Mr Ridge paid that shortfall, taking the financier’s place as creditor for that amount. After drawing a net $134,000 from the company, Mr Ridge & his interests were still owed $488,000. Just under $600,000 was owed in gst and $360,000 to the contractor.
The estimated deficit at Basset Road is $1.45 million, taking the deficit at the 2 companies to $2.8 million – $730,000 owed to trade creditors, about $930,000 in tax, the rest owed by Mr Ridge to himself.
Website: Companies Office