More trouble for Pac Sun

Press, 24 September 1987, Page 27

More trouble for Pac Sun

Pacific Sun Hotels is involved in legal action with a Christchurch company manager, Mr John Guerin, who was a former director of the hotel company. Mr Guerin, the New Zealand president of Best Western Hotels, claims he has not been given a shareholding in Pacific Sun for selling his interests in the Camelot Court Motels, Christchurch, and the Autolodge in Blenheim. The claim is for 1.4 million Pacific Sun shares for the sale of the interests to Country Lodge

Inns, a Pacific Sun subsidiary. Mr Guerin said last evening that the court case was set down for .October 6 in the Auckland High Court. Last week the Stock Exchage requested Pacific Sun to provide more information on the proposed sale of 85 per cent of its capital to an unknown Hong Kong-based company. The request for further information was made at least twice, and in the company’s reply on Thursday it would appear that the sticking point is

the acquisition of the Post Terminus Hotel, at Weggis, on Lake Lucerne, in Switzerland. The Pacific Sun directors said that the consideration of the sale of the 85 per cent interest was based on the net asset value of Pacific Sun of SUSI. 73 a share. This was dependent on the acquisition of the Swiss hotel. Meanwhile, Pacific Sun has until October 8 to either complete the 517.6 M purchase of the Pacific Sun Hotel, formerly the White Heron Hotel, in Auckland, or allow Prime-West Corpora-

tion, the Christchurch property investor, to take repossession. • Pacific Sun was awarded an interim injunction earlier this month preventing PrimeWest taking immediate repossession because the Auckland company claimed the land and cliff face on which the hotel was built was unstable. The court gave Pacific Sun a month to complete its own engineer’s report and to decide whether or not it would proceed with buying the hotel.