Any views about BlueChip NZ

**Steve** · 31-03-2008, 09:09 PM

At least it wasn't Marks fault!

Blue chip founder has clear conscience
The man who founded failed property investment company Blue Chip, leaving hundreds of people millions out of pocket, says his conscience is clear.

**minimoke** · 31-03-2008, 09:28 PM

Originally Posted by malcolm

THE NAT/ANZ BANKS FROM to day require registered VALUATION on any mortgage application above 75% of GV. ...

75% still doesn’t seem bad. A RV is probably within 10% of sale value, leaving a 10% margin for distressed sales with the remainder going to real estate / legal fees on calling in the debt. If the banks were lending to 50% of RV, then I might be worried.

**Arbitrage** · 01-04-2008, 08:42 PM

Good to see Ollie helping out:
http://www.nzherald.co.nz/section/3/...ectid=10501236

Looks like there may be a bit more to this than initially thought and from what he says, criminal charges could be justified.

**Steve** · 01-04-2008, 08:48 PM

Originally Posted by Arbitrage

Good to see Ollie helping out:
http://www.nzherald.co.nz/section/3/...ectid=10501236

Looks like there may be a bit more to this than initially thought and from what he says, criminal charges could be justified.

Mark can already be charged under the Companies Act for failing to turn up to last weeks creditors meeting.

The other directors turned up under lawyers instructions not to say anything, but it appears that Mark lost his balls...

**tim23** · 03-04-2008, 08:59 PM

Steve - Ollie isn't "helping out" for free I don't think!

**Steve** · 03-04-2008, 11:09 PM

Originally Posted by tim23

Steve - Ollie isn't "helping out" for free I don't think!

I think your comment is directed to Arb...

**patsy** · 04-04-2008, 04:09 PM

From the NZ Herald yesterday:

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PAIR GUIDED BY PREVIOUS GOOD RETURNS

Robert Steedman is still hearing out of the blue from worried Blue Chip investors who have put deposits on The Stadium apartments - the latest as recently as yesterday.

He fears there are more out there.

They are in the same position as himself.

Eighteen months ago, he and his wife put a 10 per cent deposit on two $360,000 apartments in the yet-to-be constructed development, on Auckland's Beach Road.

They did this through Blue Chip PIP schemes, unusual financial products that paid investors an impressive 16 per cent return on their deposit.

But the investors were told they would never need to own the apartments - just before completion Blue Chip would exercise a "deed of nomination" and buy the properties, returning the investor's initial deposit.

Now, with the collapse of Blue Chip, the Steedmans are faced with buying over $700,000 of property they don't want and can't afford.

The couple did not consult their lawyer. By the time they took out the PIPs they were veteran Blue Chip investors, having bought into the Gulf Harbour Lodge four years earlier.

"And for four years it ticked over beautifully. It was doing exactly what they said it would do.

"And so when you're offered this other thing, and it was just a short term, quick turnaround thing, you didn't probe and ask too many questions because you thought look, the proof of the pudding ... "

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It seems to me that the PIP scheme was just a subordinated unsecured loan paying 16% rate. Blue Chip was raising funds to complete the development. Why did all of these morons signed up for a property purchase agreement if what they were effectively doing was simply lending money to Blue Chip for a certain term? This looks so idiotic that I'm sure I may be missing something...