Tag Archives: Bankrupt

ORFU insolvent for some time

### ODT Online Wed, 29 Feb 2012
Opinion: Blog
Time to tear off ORFU’s cloak of commercial invisibility
By Rob Hamlin
With any luck, the unlamented Otago Rugby Football Union Inc. will go into liquidation on Friday. As usual the Devil is in the detail, and in this particular instance the detail is in the last three letters of the name of this organisation. If it was the ORFU Ltd. that was to be liquidated, then the ORFU board might well be looking forward to Friday with some considerable trepidation.

The DCC purchased Carisbrook last year for seven million dollars on the basis of a professional valuation. Given that the ORFU’s has ‘only’ lost some $800,000 in the 2011 period, these figures would suggest that the ORFU’s debt at that the point of Carisbrook’s sale was over eight million dollars (7.0+2.3-0.8 = 8.5). Thus, when Carisbrook was sold in 2011, it is possible to estimate that the ORFU’s debt exceeded Carisbrook’s market value by over a million dollars. These figures, combined with chronic losses, would suggest that a recognisable state of insolvency existed at that date.

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Posted by Elizabeth Kerr

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Filed under DVML, Economics, Media, People, Politics, Project management, Property, Sport, Stadiums

Dunedin City Council is buggered

### stuff.co.nz Last updated 01:00 02/09/2011
‘Marvel’ needed to pay for Dunedin stadium
By Wilma McCorkindale – DScene
Dunedin City councillors have been warned that not only is the city struggling to finance its brand new stadium, it may also not be able to afford to maintain the controversial venue. The report recommended any surplus cash flows generated by the DCC or its holding company, Dunedin City Holdings Ltd (DCHL), over the next 10 years, go to reducing stadium debt.

“That is mind-boggling,” Cr Lee Vandervis, a stadium opponent, said. “This is saying that any spare cash, anywhere, all goes to the stadium. That is every spare dollar that might show up in any budget in the DCC or DCHL over the next 10 years. There will not be one dollar for anything else.”

Another recommendation has the DCC pushing stadium debt from 20 years out to 40 years. “That adds an obscene $115 million in interest charges to the cost of the Stadium,” Vandervis said, “and the figures say we must push out to 40 years because it is no longer possible for DVL to repay the debt over 20 years.

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Posted by Elizabeth Kerr

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Filed under Stadiums

"We the people"… and some others

Seems Basil Walker is up to his usual tricks again, speaking for everyone else – even if we want him to shut up.

First it came with his legal challenge to the Emissions Trading Act taken against the government (get this) on behalf of the people of New Zealand. Now the ODT has revealed that he’s taking action against the ORC, even though he’s not a Ratepayer but is doing it for his family.

Further, of course, if the judge finds against him and awards costs to the ORC (for defending their democratic actions), it’s been revealed that it will be difficult for the judge to award full costs, the man’s a declared Bankrupt.

Sorry Basil, your heart might be in the right place, but I didn’t want your interference with the ETS (some of us liked it), and I don’t want your non-rate-paying interference now.

Full Story here in the ODT

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Filed under Economics, Fun, Hot air, Politics, Stadiums