Updated post
Tue, 27 Sep 2016 at 7:08 p.m.
On 1 August 2016 I lodged an official information request with DCC to obtain documents and audio file for the non-public meeting of Council held that day to decide Delta’s deal with “Infinity” (later, properly referred to as Infinity Yaldhurst Ltd. NOTE: Not the company called Infinity Investment Group Holdings Ltd. The information request was made subject to an extension. (In particular for more context, see Delta posts at What if? Dunedin from 1 August onwards – to access these use the term *delta* in the search box at right).
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The information received from DCC is published here.
——– Original Message ——–
Subject: Minutes of Council meeting August 1
Date: Mon, 19 Sep 2016 21:26:24 +0000
From: DCC Governance Support
To: Elizabeth KerrDear Elizabeth,
Further to Kristy’s response below, please find attached a copy of the minutes of the meeting. These are now confirmed as correct.
Regards
DCC Governance SupportAttachment: Minutes Council 010816
——– Original Message ——–
Subject: FW: Please check LGOIMA response on Delta PE documents and audio file
Date: Mon, 19 Sep 2016 20:48:01 +0000
From: Kristy Rusher
To: Elizabeth KerrHi,
In relation to your request for the information about the Council’s decision regarding the Delta & the Noble Subdivision, we now provide you with:
1. The audio recording and transcript of the non-public section of the 1 August council meeting where this transaction was considered. Please click on this link: https://www.dropbox.com/sh/jcvhpn0w2a7v1n7/AADWTnaiJcP3R0YA-dZuuo1Ya?dl=0
2. A copy of reports presented as part of the non-public section of the August 1 council meeting where the Delta transaction was discussed.
3. The minutes of this part of the 1 August Council meeting are not yet included. That is because at yesterday’s meeting of the Council, an amendment was made to this section of the minutes. They will be provided to you in their amended form when the minutes of yesterday’s meeting become available.
The information you have requested is attached. Please note that due to the late conclusion of yesterday’s Council meeting we were unable to provide you with this response yesterday.
Audio Recording of Discussion at Council Meeting
There were some technical difficulties experienced with the recording of the meeting. Unfortunately this resulted in only the first part of the meeting up until the first adjournment being recorded. We have sought expert help to recover the rest of the recording but it is blank.
An independent party has also transcribed the audio file that is available and this transcript is attached. This provides details of each speaker and may help your listening of the file.
If you have any questions please contact me in the first instance.
Regards, Kristy
Attachments:
1. CNL20160801_1967_207_5.pdf
2. Transcript of Meeting 2016_08_01 np.pdf
3. Noble-Yaldhurst Village Update – 2016_08_01 final.pdf
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GO TO NEW POST
27.9.16 Has DCC Delta stupidly bought into another Pegasus . . . . #notquiteWhy has our Dunedin City Council decided to have anything to do with Infinity via council owned company Delta ? Which Infinity ? Infinity Investment Group Holdings Ltd ? Infinity Yaldhurst Ltd ? And who is Infinity Finance and Mortgage Ltd, of a bedroom at 12A Fovant St, Russley ? Is ‘Infinity’ a front for Gordon Stewart’s Noble Investments Ltd ? We delve…. Meanwhile, here’s Infinity’s slow-troubled-road Pegasus. Cont/
█ For more, enter the terms *delta*, *infinity*, *noble* or *epic fraud* in the search box at right.
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Posted by Elizabeth Kerr
Election Year. This post is offered in the public interest.
What if? Dunedin... 
None of the known prior interests of the neighbours (caveators) in the original Noble Subdivision have been recognised in the deal with Infinity Yaldhurst Ltd, the company formed in February this year which has no substantial assets to provide as security.
The neighbours have lodged a constructive fraud case with the Christchurch High Court, and are mounting other legal challenges to have their interests recognised. Watch this space.
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Fri, 23 Sep 2016
ODT: Delta repaid by ‘Feb 2024’
It could be midway through next decade before Delta retrieves $13.4 million in bad debt from a controversial Christchurch subdivision, newly released documents reveal. […] After the sale of the subdivision, Delta received an initial debt repayment of $900,000, with the expectation it would receive the remaining $12.5 million as Infinity sold off sections. Until now, Delta has said only it was expected to take “years” to retrieve the bad debt, but a report tabled at the meeting said it could be 2024 before it was paid back.
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RECEIVED OPINION
22 September 2016
There is….
No point in getting Council approval for DCHL transactions over $10 million if Council is not given proper information to make this call.
Why the information was woefully lacking.
1. The recommendation was for Council to approve a new loan with Infinity, described later in the paper as Infinity Yaldhurst Ltd. The paper then went on to describe how Infinity Investment Group Holdings Ltd is financially sound and has a good track record. IIGH Ltd is not Infinity Yaldhurst. In other words the information provided to Council to give comfort that this would be a good deal was information of entirely the wrong company.
2. A previous development at Pegasus was done by IIGH Ltd through a subsidiary, and that one left debts behind of some $80million dollars. This subsidiary manoeuvre could result in the same issues, with the parent company IIGH walking away. It was not made clear to Council that this could happen: indeed Council was told that using another company routine was just good business practice. Good for the company, not good for creditors, and certainly not appropriate when the parent company is touting their record as relevant.
3. Council was given no recent valuation, and no information about the history of the offer recommended.
4. The offer seemed to have been in place since June, but the details were scant as given to Council close to the meeting on 1 August. In fact the report must have been available earlier since it was coming to an earlier meeting initially, but it was not given to Council until the last minute.
5. Council received a report from DCHL, together with a note from Council staff saying in effect we agree with them. The staff report gave no reasons why they agree, and both the reports actually appeared to come from the same place. Council should have had the benefit of a report independent of DCHL if it is to recommend that Council does as DCHL says. Otherwise, why have Council second guessing and ratifying DCHL decisions when internal advice is just to do as DCHL says?
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Why it might be a bad idea to have done this deal.
1. The deal available in May which asked for an extension to confirm finance (probably DCHL would not confirm any details), could well have given Delta $13million in one payment, a better idea than the possibility of this sum in 8 years’ time, or not if the subsidiary has stripped out the good bits in the meantime.
2. The neighbours are suing Delta alleging all sorts of behaviour. These same neighbours had a proposal for the sale of this land. While their proposal may not have won the day it is clear it would have solved the litigation risk Delta has, not to mention the bad publicity for Council if Delta is found to have been involved in yet another debacle.
3. The deal proposed and now agreed has been done by a company which has no clear financial backing; this limits any chance of recovering money for Delta to the amount which is in the Delta books. This is not the total owed to Delta, it is only the amount which Delta thought it might get back.
The deal Council has involves a company with no obvious assets, and a debt recoverable with a good wind far in excess of the amount in the Delta books. It is not at all clear that the deal Council has now is superior to that which it had earlier, nor to the one Council may have got in May with an extension.
4. DCHL said they were not in charge of the sale, so they were not privy to
the information around the May deal. However, Delta had a deal with Goldband Finance Ltd who was conducting the sale, that Goldband would do what Delta told them to. So surely Delta were privy to information and masterminding the sale in the background. After all Delta had more to lose in the sale than anyone else.
Having listened, or read the transcript of the convoluted meeting inexpertly chaired by Mayor Cull and adroitly manipulated by DCHL chair Crombie and GCFO McKenzie it is abundantly clear that the decision was voted on and passed by a flummoxed, dumbfounded Council, less dissent by Cr Calvert and abstention by Cr Vandervis. This in effect seems to put at risk very substantial sums of Delta resources with very little security of recovery before 2024 at the earliest, if ever.
No doubt but this seems to ensure the outcome CD has predicated in his series of “Epic Fail” installments surrounding the Noble Yaldhurst ill-fated Delta speculation deal.
It remains to be seen how it all pans out, but it only seems to confirm DCHL/Delta’s uncommonly ignorant treatment of shareholders’ interests.