Property developer Dave Henderson is considering going to court to stop his $2 billion commercial development, Five Mile Township in Queenstown, going into receivership.
Hanover Finance has instructed the security trustee to appoint Deloittes as a receiver, after Five Mile Holdings defaulted on a repayment on its $70 million loan two months ago.
Radio New Zealand understands Auckland developer Nigel McKenna has been appointed as agent to take over the development.
Five Mile is run by Property Ventures Limited, headed by developer Dave Henderson, who as late Wednesday night was still trying to save the project, and is considering legal action.
Mr Henderson told Morning Report that Hanover Finance cannot put the company into receivership, because it recently sold the loan for the project on 30 June to a company associated with an Australian finance company.
Work began on Five Mile in 2007 and it currently consists of a large excavated carpark - touted by Mr Henderson as the largest such hole for a commercial development in the southern hemisphere.
Last month work stopped on the project, and Hanover Finance called in the receiver on Thursday after a crane hire company said it was owed a significant six figure sum and filed for the liquidation of Five Mile Holdings Limited.
The implications for Mr Henderson's holdings are unclear, but other creditors claim there are many cross guarantees, including a hotel, apartments and commercial properties.
Meanwhile, Hanover Finance has succeeding into getting a mortgagee sale for another major development.
It had loaned money for the Kinloch Course Golf course near Taupo, which has been sold for an undisclosed sum .