RSL expects 60% funds recovery

Press, 9 February 1989, Page 21

RSL expects 60% funds recovery

The liquidators of Registered Securities, Ltd (RSL), expect to recover about 60 per cent of the funds invested in mortgages through the contributory mortgage group. A confidential report by the liquidators, KPMG Peat Marwick, shows that the principal sums owed amount to $97.8 million and the estimated realisation on mortgages is expected to be about $57.9M. The report also shows that arrears on mortgages at July 21 was $7.3M, although some of the mortgages listed do not have details on whether they are current or in arrears. The report shows that the biggest borrower is Manukau Park Holding and Thurlow Farm industrial land at S2SM. Mr Christopher Boyle, the chairman of Manukau Park Holdings, is also the majority owner and director of RSL. The mortgages over Manukau Park Holdings total 521.9 M, and the liquidators expect to recover SIOM. Another mortgage of $3.99M stands for Bexley Development, part of Bexley Corporation which was put in receiver-

ship last Friday. The estimated realisation on this mortgage was the full amount, but this opinion was given before the receivership was announced. The report shows that in some cases lending was made to those with a chequered financial career. Others listed as holding mortgages through RSL include Mr Rocky Cribb, associated with the Maori loans affair, Mr Ivan Kwasza, a Christchurch property developer who was judged bankrupt in the High Court over an RSL debt, and Mr Terry Fidow, associated with the so-called Gang of 20, which was involved in alleged property fraud. Maughold Enterprises, the parent company of the Harvey Wallbanger and Host Harvey chain of hotels and motels, set up by Mr Harry Holt, an entrepreneur of Christchurch and Paihia, and Mr Pat Baldwin, a Kaiapoi engineer, is listed as holding $4.55M in first and second mortgages. Recover from the firm, which was wound up owing S3OM to creditors in November, is expected to be S2M on the mortgages.