Why specialist rural lender Rabobank is picking up the tab for the food and vet costs of lions

The controversial in-receivership Zion Wildlife Gardens has a potential buyer in the wings with receiver PwC heading to court seeking to clarify how the business can be sold to help recoup the NZ$2.7 million it owes to Rabobank.

Following defaults of its bank loans with Rabobank, normally a rural specialist, Zion director Patricia Busch requested the appointment of receiver's last July. Zion was also placed in liquidation at the behest of the Inland Revenue Department last August with the Official Assignee as liquidator.

Located near Whangarei Zion has 36 big cats including lions, tigers, cheetahs and a leopard.

It was opened in 2002 by Craig Busch, star of TV series Lion Man. It was taken over by his mother Patricia in 2006 after she raised money to pay off the park's debts. Craig Busch left the park in 2008. Zion also hit the headlines in 2009 when keeper Dalu Mncube was mauled to death at the park by an endangered white tiger with the animal subsequently put down.

PwC Partner and Zion receiver Colin McCloy said today an application has been made to the High Court in Auckland that's "intended to support the sale of the Zion Wildlife Park, as a going concern with the existing animals remaining in the Park."

McCloy said an interested party has offered to buy both the business and assets of Zion.

"The receivers believe the offer represents good value and the best option to preserve the operation of the Park and the welfare of the animals. However, existing court directions need to be varied to support the sale process. As a result, the receivers have applied to the court to have the existing directions varied," McCloy added.

He said the welfare of Zion's animals is a priority for both PwC and Rabobank with food and veterinary care being provided by PwC, with Rabobank picking up the tab.

“The receivers will be in a better position to discuss progress further in the coming weeks. At this stage, we cannot discuss the ongoing sale process, due to commercial sensitivity," McCloy said.

Earlier a lawyer representing Patricia Busch raised the possibility of the animals being put down. See more here at the NZ Herald.

PwC's first report shows, aside from Rabobank which is the first ranking secured creditor, Patricia Busch as second ranking creditor, is owed NZ$292,251, staff are owed NZ$14,393, the IRD NZ$135,306, with other creditor claims - which are expected to rise further - put at NZ$24,557.

Normally a specialist lender to the rural sector including dairy and sheep farmers and the wineries, Rabobank's lending book is facing a haircut on a senior loan to TV3's parent MediaWorks with a face value of about NZ$65 million. Rabobank is also one of three lenders, alongside Westpac and PGG Wrightson, that was owed about NZ$216 million when the Crafar farms group was tipped into receivership in October 2009. The Overseas Investment Office is currently considering an offer for the 16 central North Island dairy farms from China's Pengxin International Group, which has been accepted by receiver KordaMentha.