Commodore Pty buys out shareholders

Press, Volume CXV, Issue 33940, 5 September 1975, Page 1

Commodore Pty buys out shareholders

Commodore Pty, Ltd, the Australian company running the Chateau Commodore Hotel, has bought out the other shareholders in Chateau Hotels, Ltd, the company which owned the hotel.

The merchant bank which financed the building of the hotel, Merbank Corporation, will be fully paid off. Consent to bring in the amount of money required from Australia has been granted, the managing director of Merbank Corporation (Mr J. G. Russell) told “The Press” last night. Merbank had acted as guarantor to the project, Mr Russell said, and had been instructed by the hotel owners to stop advancing further moneys to contractors.

The reason for this action by the Australian group was that it felt that the claims of some of the subcontractors were excessive, Mr Russell said. Merbank would have funded the total claims if the Australian group had

authorised these: it would be reimbursed in any case. The merchant bank would not incur any loss, he said, and the Australian company would settle all financial matters outstanding. The Commodore group had been overseeing the contract, and was taking charge now, Mr Russell said. He said that he believed that the hotel was being run on a profitable basis, with forward bookings indicating an occupancy rate of 78 per cent. Referring to the recent sale of the Ramada Inns in Christchurch and Queenstown—-in which Merbank had a 50 per cent stake—Mr Russell said that this had given the merchant banking group a substantial investment in Vacation Hotels, Ltd. This investment yielded a very satisfactory return, he said, and Merbank was well satisfied with the deal. A writ claiming $4323.60

and a lien over property was filed in the Supreme Court yesterday by Upright Scaffolding Services, Ltd, scaffolders, against Chateau Hotels, Ltd, first defendant, and H. P. Holt, Ltd, builders, second defendant. Television and Radio Services, Ltd, has filed a writ seeking $3021.90 and a lien over property against Chateau Hotels, Ltd, first defendant, and H. P. Holt, Ltd, second defendant.