9 Jun 2009

Matauri Bay sales slow

9:17 am on 9 June 2009

The recession is threatening rescue plans for a Maori incorporation attempting to sell sections at Matauri Bay in the Far North.

An application by the interim administrator of Matauri X Incorporation to allow leases offered to the public to be doubled to 104 years was adjourned for a month in the Kaikohe District Court last week so interested parties could make submissions.

Interim adminstrator Kevin Gillespie, who was appointed by the Maori Land Court, says sales are very slow.

Mr Gillespie says only 26 of the 81 sections in the first stage of the Matauri Bay subdivision have been sold and none of the 58 sections in stage two.

Waatea News reports about 80 need to be sold for the subdivision project to break even.

The incorporation got into financial difficulties in 2001 when loans were taken out through the failed merchant bank Bridgecorp to fund a bottled water venture which failed.

The new lender Strategic finance is wanting out because it too has its back against the wall with its own scheme of arrangement.