Pegasus Town receiver mulls options to recoup $142.8m for lenders
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BUSINESSDESK: The receiver for the Pegasus Town development in Canterbury is still weighing up the best way to recoup more than $142.8 million owed to its lenders.
Receivers David Ruscoe and Richard Simpson of Grant Thornton "are assessing how best to realise the company's assets to achieve the best outcome for our appointor and the company as a whole", they say in their first report.
The company's assets are made up of developed and undeveloped land, including the Pegasus Gold and Sports Club.
Messrs Ruscoe and Simpson withheld the book and realisable value of the property assets to protect their ability to get the best price for NZ Property Finance Partners, which is owed $142.8 million and called in the receivers in August.
Pegasus Town defaulted on its loan payments and was not able to reach an agreement with its lender to continue.
The secured lender is a joint venture between Goldman Sachs and Brookfield Asset Management, which bought the debt at a discount last year from Bank of Scotland International as part of a $1.3 billion portfolio in New Zealand.
The Pegasus Town development was the brainchild of Infinity Investment Group's Bob Robertson to build a township within driving distance of Christchurch for 7000 residents. BOSI came on board in 2005, providing a funding line of $107 million for the first development stage and a further $151 million for the second stage.
The receivers are continuing development work that began before their appointment and are assessing subdivision opportunities. They are also operating the golf and sports club.
They say they are not able to estimate the likelihood of any distribution to unsecured creditors owed some $3 million or $11.4 million in related party claims.