By DITA DE BONI
The embattled directors of IMI Pacific and Walakahai Pacific companies are headed for the High Court, the pair's statutory managers said yesterday.
The Serious Fraud Office arrested John Edward Baylis and Willard Amaru in a dawn raid on September 8 on charges of false pretences, misappropriating proceeds held under direction and conspiracy to defraud.
Both men are on bail and expected to attend a predepositions hearing in November.
The two men were judged bankrupt in late August, although they have since appealed against the judgment.
Christchurch-based statutory managers have struggled for almost a year to unearth the remains of $6 million funded by 200 small, central region investors in IMI and Walakahai.
Only 15c in every dollar invested has been recovered from a string of failed ventures, depreciated assets and lost deposits on property and other purchases, with little hope for any more large finds.
Investors are not expected to see their 15 per cent refund before early next year. They were originally promised returns of 14 per cent each month.
Approximately $80,000 of the lost money was "loaned" to Onix International for its rescue of a supposedly wealthy businessman from the Indonesian jungle this year.
Much more was used to buy six properties in the Wellington and Hamilton area, real estate in Queenstown, and two Jaguar cars.
Many of the assets bought were later found to be worth considerably less than the purchase price. An Oriental porcelain collection, bought by Mr Amaru and Mr Baylis for $1 million was later professionally valued at less than $30,000.
Other purchases included a collection of Aboriginal artefacts, a corporate box at WestpacTrust Stadium in Wellington, and the partial financing of a speculative venture to recover "treasures" from shipwrecks in the Caribbean.
Bankrupt directors heading for court
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