Blue Chip investors told to hang in there

Liquidator of the Blue Chip group of companies Jeff Meltzer told a meeting of struggling Blue Chip investors to focus on bridging their loan repayments for the next couple of months while he reviews a proposal from company director Mark Bryers.

Bryers has offered to contribute $25 million to Blue Chip investors from his own fortune.

Meltzer estimates some $58-60 million is owed to investors in what he describes as one of the most difficult liquidations he’s ever been involved in. It’s so complex he had to apply to court for an extension of time to file his first reports in order to gain a better understanding of the company group’s structure and flow of funds.

Meltzer advised Blue Chip investors that they ask their financiers to freeze their interest payments for a couple of months.

However some Blue Chip investors present reported having asked their financier Tasman Mortgages to freeze their interest payments, only to be threatened with mortgagee sales.

Meeting organiser Suzanne Edmonds, group coordinator of voluntary organization ‘Exposing Unacceptable Financial Activities’, says unacceptable financial practices seriously affect the country’s economy.

Edmonds says Meltzer has given Blue Chip investors hope and may have prevented some committing suicide. She urged government action to ensure financial operations meet certain legal standards.

The commerce minister is taking a “significant interest” in the Blue Chip matter, Meltzer assured investors, although the minister was not at the meeting. There was no Commerce Commission representative present either.

Paul Dale, a lawyer acting for some Blue Chip investors, says regardless of regulation, some people will always be drawn to these types of schemes.