Northern Advocate
  • Northern Advocate home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Sport
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport
  • Property
    • All Property
    • Residential property listings

Locations

  • Far North
  • Kaitaia
  • Kaikohe
  • Bay of Islands
  • Whangārei
  • Kaipara
  • Mangawhai
  • Dargaville

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Kaitaia
  • Whangārei
  • Dargaville

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Northern Advocate

Councillor admits defeat in bankruptcy fight

Imran Ali
By Imran Ali
Multimedia Journalist·Northern Advocate·
20 Feb, 2013 09:25 PM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

A Far North District councillor won't fight bankruptcy proceedings against him, saying he simply cannot afford to stump up the more than $800,000 he's been ordered to pay by the High Court.

The High Court at Whangarei is likely to issue bankruptcy orders against Steve McNally on April 9 after an earlier offer to pay only $50,000 of the $856,353 was rejected by FM Custodians, Fund Managers Auckland and Auckland Mortgage Trust.

Mr McNally, a former director of McNally Valuation (2000), which went into liquidation in 2011, valued a property in the Bay of Islands before FM Custodians lent about 70 per cent of the valuation price to the new home owners. FM Custodians owns more than 75 per cent of the debt while the rest is owned by Auckland Mortgage Trust and Fund Managers Auckland.

The homeowners could not keep up with the repayments and the lenders lost money after the house was later sold at a lower price because the housing market was down.

FM Custodians alleged Mr McNally overvalued the property and it obtained a High Court judgment against him of $856,353 in June 2012.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Mr McNally argued he could afford to pay only $50,000 over five years but FM Custodians refused his offer and served a bankruptcy notice on him.

On January 30, Associate Judge Roger Bell allowed FM Custodians, Fund Managers Auckland and Auckland Mortgage Trust 10 working days to institute bankruptcy proceedings.

The High Court yesterday confirmed the trio have filed an application for an adjudication order which would be heard on April 9.

Advertisement
Advertise with NZME.

Mr McNally said it was futile to challenge the creditors' application because he had no money.

"There's nothing I can do about it. I can't continue to trade as a professional valuer because I can't get indemnity insurance."

He earlier argued in court that the loan for the Bay of Islands property was not good lending and that no regard was given to the flexibility of servicing the debt.

He said his involvement was minor and he had not had any power to influence the lenders' decision.

"These guys [lenders] just want to see me washed up the beach," he said outside court.

Save

    Share this article

Latest from Northern Advocate

Northern Advocate

Far North homes without power after severe gales

Northern Advocate

'Economic growth is key': Luxon discusses Northland's potential with iwi

Northern Advocate

Northland businesses unite for CCTV initiative to combat crime


Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

Advertisement
Advertise with NZME.

Latest from Northern Advocate

Far North homes without power after severe gales
Northern Advocate

Far North homes without power after severe gales

More than 170 customers south of Cape Rēinga are still without power.

17 Jul 08:26 AM
'Economic growth is key': Luxon discusses Northland's potential with iwi
Northern Advocate

'Economic growth is key': Luxon discusses Northland's potential with iwi

17 Jul 06:02 AM
Northland businesses unite for CCTV initiative to combat crime
Northern Advocate

Northland businesses unite for CCTV initiative to combat crime

17 Jul 04:00 AM


Solar bat monitors uncover secrets of Auckland’s night sky
Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

06 Jul 09:47 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • The Northern Advocate e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Northern Advocate
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The Northern Advocate
  • The New Zealand Herald
  • The Northland Age
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
TOP