Travis Swamp group still has confidence

Press, 22 August 1977, Page 1

Travis Swamp group still has confidence

The developers of the proposed Travis Swamp subdivision still looked forward with confidence to the project, a director of the companies behind the scheme, Mr N. A. V, McLeod, said last evening.

Mr McLeod was commenting on articles in “The Press” on Saturday which suggested that financial difficulties could upset the project. “The Travis Swamp development has been and still is a long-term proposal of Christchurch Developments, Ltd. It has always been recognised that this development would need outside finance or a partner. This is still the situation.” he said. Mr McLeod said that Saturday’s articles on the financial situation of Christchurch Properties, Ltd, Christchurch Estates, Ltd, Christchurch Homes, Ltd. and Christchurch Developments, Ltd, presented “a very misleading picture.” He had been in bed with the flu when telephoned on Friday evening about the stories. Mr McLeod said “I was certainly not aware of the detailed allegations made in the articles or they would have been denied at the time.

“Like most organisations which relied on Securitibank for financial services, Christchurch Properties is at present gravely concerned about meeting its commitments to the liquidator of the Securitibank group because of the very high compound interest charged and adverse

changes in exchange rates,” he said. Mr McLeod said there were serious errors in the articles which he wished to correct.

“The only company indebted in any way to Securitibank or any of its associates is Christchurch Properties. That company has as its sole trading asset the office building and hotel known as Ramada Towers. “No writ has been served on any company in the group by Securitibank or anyone on its behalf. I have read of the writ being issued in ‘Truth’ and ’The Press,’ but neither I nor the companies’ legal advisers know anything of it.

“The articles state that in addition to the 53.5 M writ issued by Securitibank, registered charges against the group total 512.3 M. The actual amount owing under such registered charges is $7.4M if liability to Securitibank is excluded.” he said. “The Paramount Charitable Trust was formed in 1961 and has for some years been the equitable owner of the shares in Christchurch Estates. Christchurch Homes, and Christchurch Developments, as well as Christchurch Properties. “The companies are in no way dependent on options over land for their projects and in fact have

no options,” said Mr McLeod. “No-one can forecast accurately the potential value of residential and commercial sections in the future, but the group still looks forward with confidence to this project.” he said.

Philip Worthington, who wrote the articles on Saturday, says no criticism of the group’s finances was made, or intended, and the articles were simply an observation of the difficulties the group faces, particularly with regard to the Travis Swamp development.

It is accepted—and was stated in the articles — that Christchurch Properties is the only company in the group against which the Securitibank group of companies has claims. These were reported earlier to be the subject of the writs by Commercial Bills. Ltd. a Securitibank subsidiary, and Merbank. The article on Saturday did not say that the writs had been served.

It is accepted also that the actual amount owing under other registered charges against the group is $7.4M. The registered charges list the initial commitment and, until full satisfaction is achieved, a charge remains on the register, although the amount owing has been reduced bv partial repayment.