Christchurch’s Global Developments (Waltham) Ltd has gone into liquidation, having built this block of flats at 60 Waltham Rd for Housing New Zealand.
Another Global Homes company has gone into liquidation, just as it was to complete a $4 million sale to Housing New Zealand (HNZ). [It was put into liquidation on 22/07/15]
See SPCS Analysis of Clancy-directed companies
Global Developments (Waltham) Ltd has been building a complex of 12 units for HNZ at 60 Waltham Rd.
The company was forced into liquidation on Wednesday by Inland Revenue over tax debts. It was to hand over the complex next week.
It is the second time in about six weeks that Inland Revenue has moved against a Global Homes company.
It seized funds that HNZ was to pay contractors owed money for work on another HNZ complex in Worcester St built by Global Homes entity Derby Grey Ltd, previously called Global Developments (New Zealand) Ltd.
The company went into liquidation last year owing about $1.1m.
The building group has already cost the Christchurch City Council about $200,000 in unpaid fees.
The Global Homes group is connected to Auckland businessman John Edward Clancy, who is understood to be overseas.
It now has three companies in liquidation and another, Global Renovations Canterbury Ltd, which was doing repairs on eight HNZ properties, owes contractors hundreds of thousands of dollars.
The collapse of the group throws into question warranties and guarantees provided to HNZ, for which Global has also built units in Madras St and Gloucester St.
A HNZ spokesman said it would discuss issues over the settlement of the Waltham Rd complex with the liquidators at the appropriate time.
“We are considering our position with respect to the warranties and guarantees associated with this development,” he said.
Source: Story by Martin Van Beynen. Published 24/07/15