Sumner hotel owes $700,000

Press, 11 July 1989, Page 12

Sumner hotel owes $700,000

An order winding up Cave Rock Hotel, Ltd, which has debts of about $700,000, was made by Master Hansen after a defended hearing in the High Court yesterday. The order was made on the application of New Zealand Wines and Spirits, Ltd, which is owed $28,272 for liquor. Cave Rock Hotel, Ltd, was incorporated in February, 1987, and its largest and apparently only secured creditor is D.F.C. which is owed $605,000. It appears that unsecured creditors will get little or nothing. The winding up order was opposed by D.F.C; which claimed prejudice if it was made, but Master Hansen said that that had not been shown. The landlord of the hotel - is South Kaipara Hotels, Ltd, which is owed $18,753 but an injunction has been issued against that company from reentry of the hotel until the

further order of the Court. But now that the winding up order has been made there will almost certainly be an application to the High Court to have the injunction lifted. Mr Hans Van Schreven appeared for Wines and Spirits, Mr lan Hunt for Cave Rock, Mr Mark Zarifeh for the Inland Revenue Department and Mr Robert Collis, of Auckland, for South Kaipara Hotels. Six creditors supported the winding up order. The application first came before the Court on June .26 and was then adjourned until yesterday to enable the negotiations for sale of the lease to a subsidiary of D.F.C. South Kaipara Hotel refused to sign thq assignment of the lease. In his judgment Master Hansen said that Cave Rock was insolvent, the debt was not disputed and there would be nothing left for. unsecured creditors.