Princes Wharf developer David Henderson has had his creditors' proposal to avert bankruptcy declined by the High Court.
Henderson is fighting a bankruptcy application supported by Inland Revenue, which is owed $3.7 million, and the Bank of Western Australia, owed about $33 million, in the High Court at Auckland.
The original amount of his debt was $166 million but Henderson's lawyer, Daniel Grove, said that had been reduced to around $130 million, primarily through the sale of his stake in the Victoria Park redevelopment that was used to settle his $28 million debt with Westpac.
Grove said during a hearing last month that Henderson had been open with the court, had declared all his assets, and wanted to put up $1.5 million for a creditors' proposal to avert bankruptcy.
This proposal has been declined. It would have drip-fed creditors $1.5 million, or about 4c in the dollar, of a $130 million debt over a three-year period.
Read the court decision here.
Henderson has not yet been bankrupted.
IRD lawyer Nick Malarao said during the same hearing last month that Henderson was "holding facts close to his chest".
He added it would be in public interest to have Henderson bankrupted and his assets handed over to the Government appointed Official Assignee to further investigate his affairs.
The judgment on the case has not yet been made available.