Корона и Роторуа Траст получили лишь 1 цент с доллара после банкротства клиники QE Health

The Crown and Rotorua Trust have received about 1c in the dollar back from more than $10 million in loans to iconic Rotorua business QE Health, which is in liquidation. The liquidator has also confirmed the company no longer has the $19m purpose-built facility those loans helped pay for. QEHealth, which provided various health and wellness services, went into liquidation late last year, ending a more than 80-year history in Rotorua. The second liquidator’s report, released in June, said secured claims of $8.04m from Crown Regional Holdings and $2.01m from Rotorua Trust were received. The entities loaned QE Health money towards its move from its original Whakaue St site to a 3000sq m new facility on Hinemaru St, completed in 2023. It was originally established in 1942 as a temporary hospital to rehabilitate soldiers returning from World War II. It opened to the wider public in 1948. Clinical services included rheumatology, physiotherapy, psychology, orthotics, dietetics, and occupational therapy. The first liquidator’s report in November showed QE Health owed at least $13m to 132 creditors. It said the company reported it had been unable to generate enough income to cover its costs. The second liquidator’s report showed the company had an “estimated realisable value” of assets worth $760,227 as of June 2. This included cash, debtors, and plants and equipment. It owed $10.1m to preferential and secured creditors. The total owed to unsecured creditors was to be determined. The liquidator would continue working through QE Health’s assets and investigating its records and books. QE Health had funding from loans and grants for its new build. These included an $8m loan and a $1.5m grant from the Provincial Growth Fund, a $2m loan and a $1m grant from Rotorua Trust, and a $1m grant from the Rotorua Lakes Council. The Provincial Growth Fund is now administered by Kānoa, the Government’s regional economic development and investment unit. Kānoa general manager of investment management Brent Chalmers told the Rotorua Daily Post it was waiting on the liquidator to finalise its work, “so we have a full understanding of the position”. Chalmers said usual practice would be to write off any unrecoverable funds. Rotorua Trust chief executive Blair Gilbert said the trust was “deeply disappointed” by the loss of QE Health services, which had benefited people from Rotorua and beyond for decades. He said the trust had worked closely with the liquidator to recover all available funds and to ensure staff were prioritised for payment. “Despite the financial loss, Rotorua Trust acknowledges the positive impact generated through its investment during the period QE Health remained operational.” This included removing the ageing buildings and providing health services for patients, he said. Gilbert said the trust’s diversified investment portfolio had helped mitigate the overall financial impact. “We remain focused on achieving strong investment performance to ensure we can continue delivering lasting benefits to the Rotorua community.” What is happening to the building? Liquidator Steven Khov told the Rotorua Daily Post the QE Health building was no longer an asset of the company, and it had been passed to the landlord as per its lease agreement. Khov said he was uncertain if there would be other potential avenues for distributions as the liquidation process remained ongoing. Landowner Pukeroa Oruawhata Trust chief executive Mark Gibb said its subsidiary, Pukeroa Lakefront Holdings Ltd (PLHL), had reached an agreement with the liquidators to surrender the existing ground lease, with the building reverting to PLHL as the landowner. PLHL also agreed to buy equipment inside the building following QE Health’s closure. Gibb said PLHL was saddened by the developments with QE Health and its subsequent closure. He said PLHL took possession of the building from the liquidator late last year and was exploring potential lease options for the site. Financial struggles The former interim chief executive of QE Health previously said the primary reason for closure was Health NZ’s “lack of meaningful increases” since 2018 to contract funding, making it “impossible” to cover operating costs. A potential sale of the business collapsed after Health NZ refused to transfer its contracts, which represented 80% of the business’s income. Health NZ has said it does not believe its contracting decisions caused QE Health’s closure, and that it understood the decision to place QE Health into liquidation was not based on whether service contracts would transfer.