Hotel offers 65c

Press, Volume CXV, Issue 33942, 8 September 1975, Page 1

Hotel offers 65c

Commodore Pty, Ltd, which runs two new Chateau Commodore Hotels, one in Deans Avenue, Christchurch, and one in Blenheim, has offered the hotels’ creditors a settlement of 65c in the dollar.

A letter sent to all the! I creditors on Friday from a : Christchurch firm of solicitors (acting for the Australian hotel group set out the proposals and explained why the offer was being made. ! The total cost of the two ! hotels was estimated in February at s6m, but the final cost had risen above this by '!more than sl.2m, the letter 'stated. ’ The contractor for the ’! construction of both hotels j was H. P. Holt, Ltd. of Christ- ’ church. The sl.2m outstand- ' ing is owing to subcontractors, some of whom ’ have already filed writs ' against the construction com-i pany or the two New Zealand! companies, which commis-, ’ sioned the two hotels.' Buffer fund “It is said that H. P. Holt, ' Ltd, does not have sufficient ’ resources to pay such excess, ; in the immediate future,” the ■letter said. The two companies are Chateau Hotels, Ltd, the i’Christchurch-based company which owns the Deans Avenue property, and Chateau Commodore (Blenheim), Ltd. Commodore Pty, of Melbourne, is a minority share- ! holder in both companies. The letter to the creditors : | was sent on instructions from ■Mr L. Erdi, a joint managing i director of Commodore Pty, (to tell them that the group proposed to buy all the reJmaining shares in the two I New Zealand companies. It also proposed “within ' i the fair limits of its resources, to make a fund! •; available to that company so I that the impact of a heavy I i! loss by H. P. Holt, Ltd, on ■ .: sub-contractors and suppliers i should suffer as little disturb-( ! ance as possible to their con-( [tinuance of trading.” Good will II “Subject to the agreement! > of sub-contractors and suppliers and to Commodore obI taining all necessary GovernI; ment consents, it proposes to , set aside such a fund of addia tional finance for the hotels las will allow every sub-

contractor and supplier for the hotels to be paid a minimum of 65 per cent of the true balance now owing to it by H. P. Holt, Ltd.” The group says that the proposal is both practical and a good-will gesture- which should at the same time preserve the prestige of hotel ventures. The 65. per cent is to be paid with an immediate

Work has begun on a new wool store for the Wool Marketing Corporation (above) on a site in Blenheim Road.

It will cover 127,000 sq. ft and will be able to store 35,000 bales of wool and will provide office space for corporation staff in Christchurch.

Expected to be finished in December, it will allow the corporation to store all its wool in Christchurch under the one roof instead of in leased space as at present. The corporation plans a further 81,000 sq. ft wool store, capable of holding 24.000 bales, on the same site but a final decision on this has not yet been made.

: one-quarter of this amount - and the balance of threej quarters to be paid- within t 60' or 90 days, as arranged. “Commodore Pty, Ltd, be- : lieves that the proposal made I should greatly mitigate the i substantial loss to creditors ■ which might otherwise result 1 and should obviate the complications, costs and delays ! that might attach to any proJ cess of law.”