Christchurch City Council beneficiary Dave Henderson got more, but not unexpected, bad news today.
The receivers say that his Five Mile Holdings owe creditors $79.6 million. $73.6 million of that is owed to Hanover Finance and financier NZ Castle. Hanover Finance is itself in financial trouble having frozen over $500 million of investors funds.(Yesterday Hanover's principals, Eric Watson and Mark Hotchin, said they would contribute $96 million in cash and property to ease Hanover's plight - this restructuring proposal has to be approved by Hanover's investors.)
But wait - there's more. Much more. Dominion Finance, which has gone into receivership, has yet to advise how much it is owed by Five Mile. In addition, claims had not been received from all parties with security interests registered against Henderson's company.
And another unsecured creditor is owed over $3 million by Five Mile Holdings.
Smith Crane and Construction lodged an application for liquidation of Five Mile in August and that application has been adjourned by the High Court until early next month.