Tag Archives: Gold Band Finance Ltd

Post pulled, more later #Delta

The post by Christchurch Driver [CD], entitled ‘….Exit Left Mr McKenzie from DCC’, part of the Delta #EpicFail, series, was pulled not long after publication, 12-13 June 2016, at our own behest.

Some of our readers will have received automatic email alerts that resulted in a Not Found message.

Fear not, the material will be reformulated in upcoming posts specifically hewn to characterise and critique Delta Utility Services Ltd —but which will also touch on soulless marriages to DCHL, Aurora and quite possibly our beloved DCC. Wherever fancy, or horror takes our terrier correspondent.

apple, fall far from the tree [cleveland.com] 1a

Updated Thu, 16 Jun 2016 at 8:05 p.m.

C H R I S T C H U R C H • H I G H • C O U R T

Noble Subdivision, Yaldhurst
Yesterday, there was a High Court conference in front of Justice Gendall regarding proceedings against Noble, Apple Fields, Justin Prain, and Cardno where it was advised that Gold Band and Delta would be added to proceedings for constructive fraud along with Noble and including fraud on the Land Transfer system. This sitting was open to the public.

Justice Gendell included the advisement re Gold Band and Delta in his written minute of the conference.

Reminder: Delta have 100% control over the first mortgage and 70% ownership of it.

ODT might like to chase the legal action.
Hint. On behalf of Dunedin and Otago ratepayers.

Other proceedings chance in the wind.
We hear that Noble has threatened Delta several times —if Delta does not do as Noble says then Noble, and Noble related parties, will sue Delta.

[ODT] Where does it end for Ratepayers ?

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *auditor-general* or *noble* in the search box at right.

Posted by Elizabeth Kerr

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

*Image: cleveland.com – apple, fall far from the tree (Darcy)
[tweaked by whatifdunedin]

2 Comments

Filed under Business, Delta, Democracy, Economics, Events, Finance, Infrastructure, Media, Name, New Zealand, People, Project management, Property, Public interest, Resource management, Site, Town planning, Transportation, Urban design, What stadium

Delta #EpicFail Noble Subdivision : Avanti Finance —Feeding at the Delta Trough

Election Year : The following opinion is offered in the public interest. -Eds

Received from Christchurch Driver [CD]
Monday, 18 April 2016 11:03 p.m.

Readers may remember that in an earlier post, ‘Gold Band Finance – The Little Finance Company that did (Delta)’ March 2016 – your correspondent was lacking information on what transpired between Avanti Finance and Delta.

Your correspondent indulged in some dark speculations about what Delta might or might not have done. But recently your correspondent has received email information shining a light on that transaction, a welcome piece of disinfectant as Justice Brandeis would say. While we no longer see through a glass darkly on this matter, the disinfectant metaphor is apt, as yet again, Delta suffers another grievous and substantial financial wound, this time, a deliberate and self-inflicted one. It seems that in order to save or salvage something from the Noble debacle, it is first necessary to destroy the Delta financial reserves.

The conversation must have gone like this : “Dear Avanti, you have gate-crashed our game of Monopoly and you have further erred in somehow gaining a piece of the Noble subdivision that we simply must have ! Poor form, poor form indeed. Now chaps, we can do this the easy way or the hard way ! There is no way in this whole wide world we are prepared to pay you the 37 % per annum interest rate that your friends at Gold Band are charging on their part of the mortgage…. That was then, and this is now !! Take it or leave it, our offer is…. not a penny more than…. 34.50 % !!”

Yes readers, Delta in March 2015, paid Avanti $2.19M for its interest in the Noble Investments (NIL) first mortgage. Avanti had paid Gold Band $1.5M for the same interest just 16 months before in November 2013. A gain of $690,000, or 34.50 % per year. Let’s see, only 350 times the rate of inflation. Avanti made out like a bandit, but then, they are a finance company…. and Delta are, well, Delta.

Delta CEO Mr Cameron confirmed that Delta spent $3.3M “strengthening its position”. We now know how that went : $1.2M to Gold Band, $2.19M to Avanti, which all pans out, taking into account a rounding error.
What we do not know is the timing of the $3.3M, but that is not a central issue at the minute.

Readers should bear in mind that if the situation is resolved by June 2016, then the first mortgage of $1.75M lent by Gold Band around 2004, could have spawned the amazing sum of $11.8M, and at least $9.1M. Gold Band and Cup Investments (CIL) will have lent out $1.75M and received $3.1M plus $2.7M received from Avanti and Delta. That is a total of $5.8M. Huge. Delta have paid $3.3M for a part security and if they are charging around the same interest as the others, then their figure will be around $5.5-6M. That is, the first mortgage securities of Gold Band and Delta will consume the first $10M of the mortgagee sale. Not looking good for Delta’s core debt of $11.35M of lower ranked securities….

ODT 18.4.16 front page small [allied.press.co.nz] 1bYour correspondent is desperate to see a Councillor ask for confirmation about this and the Gold Band and Avanti ‘premium’ they paid. Perhaps then the Otago Daily Times might sense that Delta paying $1M plus over the face value to Gold Band and Avanti for part of a first mortgage in an attempt to get a better recovery on their lower ranked securities is News, and not in a good way. Heaven knows they could do with some – Building Consent Delays on the front page – Good Lord what next ! more cat pictures ?
The Wash ?

Your correspondent can’t wait to read the emails around that board decision…. when the Auditor-General releases them. Will there be another email from a Delta Director stating in effect “if the subcommittee agrees then I agree with them?” (As there was for the ill-fated decision to proceed with Luggate).

Next we shall look at the “Strategic” reasons the DCC put forward as compelling reasons for retaining Delta in its report…. Irony and comedy abound….

[ends]

█ For more, enter the term *delta* in the search box at right.

Posted by Elizabeth Kerr

*Image: alliedpress.co.nz – ODT 18.4.16 front page sml

5 Comments

Filed under Aurora Energy, Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Finance, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Property, Public interest, Site