A deal designed to help Delta recover a $13.4million bad debt from a stalled Christchurch subdivision is expected to take years to realise and comes with no guarantees, it has been revealed.
Dunedin City Holdings Ltd chairman Graham Crombie outlined details of the deal in a media statement yesterday, following a marathon discussion behind closed doors at Monday’s full Dunedin City Council meeting.
Councillors at the meeting authorised Delta to enter into a new loan agreement with a potential buyer for the Yaldhurst subdivision, he said.
That allowed the $13.4million bad debt owed to Delta by Noble Investments Ltd to be transferred to the unnamed potential buyer as a loan, to be repaid over the next few years, Mr Crombie said.
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