``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 earlier loans from South Canterbury Finance and Bank of New Zealand.
``Precisely how the additional debt (to South Canterbury Finance and 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 ... is that on 25 June 2007 Aorangi received real money for refinancing purposes and repaid real money to South Canterbury Finance.''
The balance owed to Aorangi fluctuated although 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.
``Any discussions or protests which Mr Cameron made to Mr Hubbard in 2010 do not alter the fact that the debt existed.''
Associate Judge Osborne was satisfied the debt flowed from actual payments.
After Hubbard, his wife Jean and Aorangi were placed into statutory management, Cameron was left to raise funds to progress the subdivision elsewhere, securing a $1 million loan from Basecorp Finance.
``Mr Cameron's decision in November 2010 to obtain further finance from Basecorp Finance was an understandable step in the interests of Emerald Shores,'' the judge said.
``But when in October 2011 Mr Cameron undertook a hive down of the remaining assets of Emerald Shores to Emerald Shores (2011) Ltd, thereby stripping Emerald Shores of its remaining real assets, he would have brought to an end any claim Emerald Shores may have had in equity to force Aorangi to wait further for its money,'' the judgment said.
Cameron also managed the Hubbard-backed Woodbury Rise property development in Tauranga, and is being pursued personally by the liquidators of that project for the loan balance, according to their second report. Woodbury Rise owed $4 million to Aorangi, $315,000 to Hubbard personally, and $35,000 to Southbury Group when it was put into liquidation last year.