Liquidators for Hubbard-linked property
Mon, 16 Jul 2012 2:31p.m.
The High Court at Timaru has appointed liquidators to a Tauranga property development over some $2.5 million owed to the frozen Aorangi Securities.
Associate Judge Rob Osborne appointed Kenneth Brown and Paul Manning of RHB Chartered Accountants as liquidators of Emerald Shores, according to a June 28 judgment that was published on the Justice Ministry's website this week.
The judge upheld the claim that Bay of Plenty businessman Peter Cameron's swapping of property assets out of Emerald Shores and into Emerald Shores (2011) amounted to a "hive-down" and that the transaction would "force Aorangi to wait further for its money".
The company was set up in 2001 when Mr Cameron approached Allan Hubbard about a potential joint venture over a subdivision in the Tauranga suburb of Papamoa.
Mr Cameron ran the property development's operation and sales, and left Mr Hubbard to "make the financing arrangements and attend to the books", the judgment said.
"Mr Cameron's evidence is that he also had no knowledge even of bank statements as he did not need to access them, trusting Mr Hubbard."
The outstanding debt came from $4.8 million advanced to cover prior loans from South Canterbury Finance and Bank of New Zealand.
"Precisely how the additional debt [both to South Canterbury Finance and through current account to the Bank of New Zealand] built up between 2001 and 2006 is not demonstrated by the documentary evidence," the judgment said.
"What is clear from the documentary record is that on June 25, 2007 Aorangi received real money for refinancing purposes and repaid real money to South Canterbury Finance."
Over the years the balance owed to Aorangi fluctuated though the judge said it wasn't clear whether that was from additional development costs, Emerald falling behind interest repayments, or both.
"I have found [contrary to Emerald Shores' pleadings] that Emerald Shores was indebted to Aorangi and that the debt had not been fully repaid," the judge said.
Mr Hubbard was killed in a North Otago car crash last year.
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