The High Court will decide how leftover funds from the sale of Mainstreet Lodge in Kaitaia is to be divided up.
The backpackers lodge came to prominence after its former owner Michael Harris drugged and indecently assaulted 19 male guests there between 2005 and 2014. The 59-year-old was jailed last July for eight years after he pleaded guilty to his offences.
The lodge, which included the manager's residence, was sold for $600,000 to new owners and a neighbouring building also owned by Harris for $350,000 under a mortgagee sale last year.
Read more: Infamous Kaitaia backpackers' given new name and brighter future
Harris was the sole shareholder and director of two companies that owned both buildings. Just over $100,000 is left after ASB as the mortgagee and others were paid from the sale.