Fiji Villa Resort on Brink of Receivership

The company developing the $300 million Fiji Beach Resort & Spa managed by Hilton says it is on the verge of going into receivership, The New Zealand Herald reported. Neville Mahon, Auckland-based developer of the huge luxury property, has written to villa owners saying receivership of Denarau Investments is imminent. Bank Of Scotland (BoS) and Auckland finance company Strategic had funded the project. Mahon says he has been unable to pay dozens of investors who bought villas at his Hilton Denarau Island project, planned to be eventually expanded and called Fiji Hilton. Investors are owed $1.2 million for last-quarter 2008 payments and have been complaining for months but Mahon told them he had funding problems. BoS had provided a $45 million loan facility and taken over the first mortgage from Strategic Finance, he said. He wanted to pay Strategic $55 million over four years but needed an extra $14 million to keep going. Read more.