Bankrupt station owes $6.1M

Press, 21 May 1988, Page 3

Bankrupt station owes $6.1M

Timaru reporter

Debts of $6.1 million forced the owner of one of South Canterbury’s best known high-country stations, Haldon station, to file for bankruptcy on Thursday. Mr James Innes has blamed the collapse of his muiti-million-dollar high-country business on falling deer prices and the station’s inability to meet debt servicing payments at high interest rates.

He said he was caught by the unexpectedly long period of high interest rates after the lifting of controls by the Labour Government. The high value of the New Zealand dollar and the Government’s standard value system in the deer market also contributed to his downfall. Haldon station borders Lake Benmpre and is known well beyond New Zealand.

The largest debt of about $5 million is owed to I.F.C. Securities, of Auckland, and this company will take over the station even though it is also in receivership. The company’s receiver, Mr Lauri Chilcott, will send a representative to South Canterbury to assess the station’s future but it will continue to be run as a going concern. A station manager will be appointed and Mr Innes will remain as a staff member possibly in an advisory role.

The other 15 staff will still be employed. In addition to I.F.C. Securities, Mr Innes also owes Wrightson Dalgety $600,000, Westpac Bank $200,000, and he has sundry debts of $400,000.

Mr Innes does not own the 14,373 hectares of land but leases it from the Innes Family Trust. The trust has mortgages secured against the property of $lOO,OOO to Tripp Rolleston Nominees, Ltd, and $600,000 to the Rural Bank. At this stage the trust’s ownership of the land is not threatened.

Mr Innes spent recent months trying to find an equity partner who might provide capital but he was unsuccessful and has now been forced to file for bankruptcy. Haldon station has been in the Innes family since 1919. Mr Innes took over in 1970 and quickly followed the Government of the day’s dictum, to expand and diversify. Sheep, cattle and deer stock units were increased from 7000 in 1970 to 30,000, and the annual turnover went up. to an estimated SSM. Mr Innes established a deer business, Helicorp. However, when deer prices fell from about $3500 to $BOO the company was forced into receivership with debts of SI.2M, though it is not part of the bankruptcy proceedings.