Blythedale resort payout

Creditors of the R1 billion Blythedale Coastal Resort (BCR) development can expect to get their money back, now that the scheme has been placed under business rescue.

At a meeting of creditors and stakeholders at the Durban Country Club last week, 97,55% of creditors voted in favour of the business rescue plan’s preliminary approval.

This was the eighth meeting of creditors since business rescue practitioner Ken Stewart took over.

The troubled BCR scheme, launched shortly before the property meltdown of 2008, was originally hailed by government as a unique private-public partnership. However last year the deal was reversed and the land, formerly the farm of Rodger Stewart, was awarded to the Zwelabantu Dube community and the future of the resort development placed in further doubt.

At the start of last week’s meeting, creditors were encouraged to vote in favour of the plan, which would see them reimbursed accordingly.

“As practitioner I must ensure a clean, debt-free company is handed over to the Zwelabantu Dube Community Property Association (ZDCPA). If the plan is approved you will be paid out, and any arising disputes will be resolved,” Ken Stewart said.

Addressing creditors BCR chief executive officer Andrew Thompson said it had been a long journey, since eLan Group CEO Mark Taylor signed the first agreement in 2003.

He said by 2007 the resort had reached R1bn in pre-sales, though he and Taylor hit “every obstacle” along the way.

“We are sorry for all the stress created by legalities and delays. We have learnt a lot and hopefully, this means closure. We hope that the paradise of Blythedale Coastal Resort still becomes a reality.”

He expressed hope that ZDCPA would consider eLan as development partners in the future.

The land claim by the Zwelabantu community was resolved last June, when land claims court acting Judge AJ Sardiwalla signed a settlement agreement which would see the Commission of Restitution of Land Rights under the minister of land affairs pay R332m to BCR for its 80% shareholding in the property.