Showcase Auckland hotel Westin Lighter Quay in chaos
As many as 100 lay-offs are tipped at the five-star development in Auckland's Viaduct Basin following High Court action by approximately 100 unit titleholders to cancel the leases on the 114 rooms.
Receivers Korda Mentha is acting as receiver for Bank of Scotland, the primary creditor to the $130 million development, which was undertaken by businessman Nigel McKenna, through his company, Melview Viaduct Harbour.
The receiver intends to try to operate the hotel on the remaining 60 rooms and has barred unit owners from accessing their properties, while declining to take up an offer of arbitration. The unit holders offered to buy out the remainder of the development and re-establish a basis for the whole hotel complex to remain operating.
The hotel is fully booked during next year's Rugby World Cup.
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