The appointment has been made in the interests of bondholders following the collapse of the last of several rescue packages that the Ballantyne Group companies have been endeavouring to arrange, Tower Trust general manager Glenn Clark says.
The developers involved in the original rescue arrangements, which supported a proposal agreed to by bondholders on 19 April last, announced late last month, they had withdrawn from it.
"The appointment of the receivers will ensure the orderly sale of the resort in the best interests of bondholders. The Ballantyne bonds, which are supported by first mortgage securities over the resort, fell due for repayment on 30 September last year and we have been working continuously since before that date to maximise the amount of money able to be repaid to bondholders."
The completed Resort would have comprised some 150 residential sections, an 18-hole championship golf course and clubhouse, sports facilities and a health and fitness centre. At this stage the golf course and clubhouse have been completed and are in full operation. As well part of the residential development has also been completed.
The 600 bondholders invested $8 million in the project.
"It is too early to make any predictions on the outcome of the Receivership or of the likely approach we will take to the sale of the Resort. For the meantime the golf course and clubhouse will continue in operation and we will be working closely with the Resort’s staff to ensure the facilities are maintained to a good standard," receiver Grant Graham says.
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