Daily Archives: August 26, 2016

Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed

Received from Christchurch Driver [CD]
Fri, 26 Aug 2016 at 9:47 p.m.

Readers, you must allow your correspondent some iced cupcakes with his Choysa tonight, go on then, the ones with the cherry on top….your correspondent, with a modicum of luck was in fact 100% successful in the dire prediction that Infinity, of Wanaka, are indeed the purchasers of the Noble Subdivision. Our friends at Delta have issued a breathless press release explaining they are or have received $0.9m – yes $0.9M, from their friends at Infinity. The sky is blue, houses will be built, Delta’s financial fruit will follow. Fancy that !! Let us allow reality to intrude : This is the first, and only guaranteed payment that Delta will receive for the outstanding $25M+ debt they have incurred there. That’s not low hanging fruit, it’s been trampled underfoot and is not even worth stewing (over). Trampled underfoot also is the small matter of the outstanding interest. Would it be churlish to remind readers that Delta, of course, has written off about $12M in interest because it wanted to protect certain reputations more than it wanted to protect ratepayers ? Would it spoil Delta’s collective fist pump to remind them that $0.9M is no more than (and likely less than) 4% of the outstanding debt ? Yes I thought so. Delta as debt collectors ? = EpicFail.

Missing in Delta’s gushing remarks from Grady Cameron was any mention of the Constructive Fraud action. It seems that the hapless Mr Smillie has taken Delta down a dark cul-de-sac yet again this week. Mr Smillie has opposed Delta being joined to the constructive fraud action, with a mistaken understanding of High Court rule 4.56. However, that rule is not relevant and it is trumped by High Court Rules 4.1 and 4.3 which allow parties to be joined. Basically, the rules allow that a plaintiff can joinder anyone at any time, and the plaintiff caveator in this action is 100% unlikely to allow the central party to the constructive fraud action (yes, that is you Grady as CEO of Delta) to smile bashfully and say “can I go now?” after having undermined the interests of the neighbours on occasions too numerous to count at this point. Oh well Mr Smillie, another unpaid legal bill….

This is an important point because our Delta friends seem oblivious to the impending legal actions they are facing. Delta think that because the caveats were lifted, all is well, but that is still subject to a court of appeal hearing, and the way is open now for Delta to have another action brought against them by the neighbours. Delta and the DCC’s pockets are deeper than Gold Band’s, and they can’t go broke, so from the neighbours’ view, what’s not to like ?

Delta’s utter stupidity is revealed when the press release acknowledges that they have allowed a bank lender to take the first mortgage over the property, and have put themselves, yet again in the same weak position. As noted in the Delta —EpicFraud #10 post, Dunedin City Council just needed to show a scrap of acumen and take control of the subdivision. Now their fortunes are tied to an even weaker developer than Noble (how is that possible ?), who has managed to lose, much, much more money than Noble (truth stranger than fiction), and to cap it off, are in the same second mortgage position. This is not logical. But it is a windfall – for Infinity. Could there be a quid pro quo somewhere ?

Turnips all round. Readers, consider when voting, that Cr Lee Vandervis is the only surviving councillor (there were only ever two, Hilary RIP from Council) who grasps this major issue and has fought for the ratepayers. Cr Vandervis has never been one to accept Mr Crombie’s vague platitudes and was always wary of Mr McKenzie. Vandervis for Mayor.

[ends]

From: Gary Johnson [Gary.Johnson @thinkdelta.co.nz]
Sent: Fri, 26 Aug 2016 at 4:21 p.m.

Message: Please find media release attached regarding a breakthrough on recovery of outstanding debt owed to Delta in relation to the Yaldhurst Village subdivision.

160826 Media Statement_Breakthrough on Yaldhurst subdivision debt recovery

160826 Media Statement_Breakthrough on Yaldhurst subdivision debt recovery

“With a new developer, new financing and removal of the caveats, the way is now clear for the Yaldhurst Village subdivision to restart….” Mr Grady (sic) said. –emphasis by whatifdunedin

### ODT Online Fri, 26 Aug 2016
Delta sells Christchurch subdivision
By Vaughan Elder
Delta has hailed the sale of a controversial Christchurch subdivision as a breakthrough in its efforts to recover $13.4 million in bad debt. The Dunedin City Council owned infrastructure company yesterday announced Wanaka-based developers Infinity Group purchased the Yaldhurst Village subdivision. […] The purchase means Delta has entered a new loan agreement with Infinity Yaldhurst Limited, to replace the existing $13.4 million debt owed to Delta by the original developer.
Read more [See tomorrow’s ODT]

● INFINITY YALDHURST LIMITED (5886102)
Incorporation Date: 09 Feb 2016
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/5886102

Ultimate holding company :
● INFINITY INVESTMENT GROUP HOLDINGS LIMITED (1004601)
Incorporation Date: 06 Dec 1999
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/1004601

Related Posts and Comments:
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel

█ For more, enter the terms *delta*, *noble* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

13 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, District Plan, Economics, Finance, Geography, Housing, Infrastructure, Name, New Zealand, OAG, Ombudsman, People, Perversion, Politics, Project management, Property, Public interest, Resource management, Site, Town planning, Transportation, Travesty, Urban design