Mark Bryers, the former founder of Blue Chip, has been declared bankrupt following creditors' no to his proposal. The Sydney-based businessman did not appear in High Court in Auckland before the Associate Judge David Robinson, according to media reports. Bryers faces a number of business failure charges and the investors are still working out ways to save their mortgaged houses.

The judge said that there is no question of adjournment of proceedings as demanded by Bryers. Robinson added, "All that will happen is that the adjudication will be delayed and other creditors may be put to more expense in considering a proposal that simply can't get off the ground."

Cook Nelson St Leasehold and some other creditors had brought bankruptcy proceeding against Bryers, following his failure to meet his financial payouts. The failure of 22 Blue Chip-related companies had proved very dearly to about 2000 investors who are said to have lost around $80 million.

Some investors had paid $42 million of deposits between 2004 and 2006 for apartments with the Blue Chip, but the liquidation ended their hopes, along with those of the creditors and other financial institutions.