Developer Ma: down but not out
Failure to pay debts when they were due is the reason the Edin Rotokauri development in Hamilton has ground to a halt, but the company’s founder still believes in his vision.
Edin Rotokauri, which launched in early 2022, was intended to be a new suburb of 2000 homes and a retirement village on the north-west fringe of Hamilton.
It was envisioned as a medium-density development, but one with a difference as about 50% of the 137 hectare site would be kept as community parks and nature reserves.
Auckland based developer Charles Ma was the driving force behind the project, and the company he set up to carry out his ambitious plans was Rotokauri North Holdings Ltd.
But the High Court at Auckland put the company into liquidation on March 22, and liquidators Steven Khov and Kieran Jones, from Khov Jones, have now issued their first report on the company.
It said the reason the company had failed was that it did not meet its debts as they fell due. Five creditors were listed in the report, including Bloxam, Burnett and Olliver Limited, the engineering and planning consultancy that applied for Rotokauri North to be put into liquidation in early March.
There were also unsecured creditors, and the liquidators were determining if there were any unpaid wages, and holiday or redundancy pay owed to former employees, the report said.
A claim from Inland Revenue was yet to be received.
The value of Rotokauri North’s land and building assets were not disclosed in the report, and nor was the total value of the company’s assets.
That information was withheld because it was commercially sensitive, and the liquidators said it was prudent not to disclose any value because it might be prejudicial to a current or future sale.
Figures around the estimated deficit, the value of debt to the total preferential and secured creditors, and the estimated deficit before unsecured creditors were withheld for the same reason.
But the liquidators understood the company had entered into a conditional sale agreement for the Rotokauri property after a marketed sale campaign.
“They are in the process of reviewing the sale to determine whether or not there is benefit to the company to progress the sale, and as part of this process, they are engaging with the relevant secured creditor.”
Rotokauri’s solicitor was also holding funds from parties that had bought lots of land, and the liquidators were currently assessing that position, the report said.
“It is not practicable to estimate the date of completion of the liquidation or if there will be any distribution at this stage.”
The Rotokauri North development would be a significant one for Hamilton, and Ma said that he still believed in the vision behind it despite the current situation.
He said it had been a healthy project initially, but the last few years had been difficult.
There were significant hikes in rates, timing blew out drastically because of lockdowns, there were supply chain hold-ups, costs escalated, and the economy declined.
Refinancing became more difficult, and it got to a point late last year where the market had not changed after two years, he said.
“We realised we had to let the project go in order for the vision to be delivered, so we started the process of engaging with the market to sell the land with consents late last year.
“Early this year we had one serious buyer who was doing due diligence, and discussing issues with the council. I was hopeful it would be sorted in a couple of months, and the project would continue.”
But the liquidation application was made, the company was put into liquidation, and he had to stop work on the development, Ma said.
“If it proceeds I am confident creditors will be paid because they deserve it. If the purchase does not go ahead, I would like to have the chance to refinance and continue with the project to see it through. I am confident I could get refinancing.”