KEY POINTS:
In a Solomon-esque judgment, Bridgecorp's Rod Petricevic has been told he can have a court order staving off bankruptcy proceedings - but only if he comes up with $576,100 by 5pm next Tuesday.
That's the sum receivers say the founder of the failed finance company owes them for
a tax bill.
The receivers gained a summary judgment last month ordering Petricevic to repay the money - plus interest. This comes to a total of $661,333. But Petricevic plans to appeal against the order, and has been battling to avoid bankruptcy in the interim.
Yesterday in the High Court at Auckland, Justice John Priestley awarded him a stay of execution, meaning the receivers cannot begin bankruptcy proceedings.
However he attached the condition that the stay would only remain in place if Petricevic - who claims he is insolvent - deposits the $576,100 in a High Court trust account by the Tuesday deadline.
Justice Priestley made much of the "paucity" of evidence Petricevic gave about his finances.
While the former Bridgecorp head claimed he was unable to satisfy his creditors, he had earned $4 million in the three years to 2007, and had received total advances of $4.9 million from his family trust, the judge said.
However, his evidence failed to list his assets or those of the trust's, it did not describe the approach of the trust to the large advances, and there were inconsistencies surrounding eight properties, seven of which Petricevic said were owned by various trusts.
There was also the issue of a $120,000 Porsche 911, bought by Petricevic in 2005. Three days after Bridgecorp collapsed, ownership of the luxury car was transferred to the R M Petricevic Family Trust - of which Petricevic and his wife are directors.
The receivers saw this as "a pointer to Mr Petricevic's mindset", Justice Priestley said.
"That unease was augmented by the fact Mr Petricevic had been highly selective in the financial information he had chosen to put before the court.
"[He] is able to access money when he needs or wants it, whether from the trust or assets he has not fully disclosed.
"If I am wrong then he is insolvent, and the sooner he is adjudicated the better." Petricevic's lawyer, Paul Dale, argued his client's case could be heard in the Court of Appeal as early as next month. As little would change in that time, there was no point in a stay of execution.
The receivers of Bridgecorp Management Services, the arm of the Bridgecorp group which paid its management, gained last month's summary judgment over an advance the company gave Petricevic in September 2006 to pay his tax bill.
It was to be repaid out of salary and bonuses due to Petricevic in the year ended June 2007.
But between September 2006 and the July 2007 collapse of Bridgecorp, Petricevic earned a further $1 million with no repayment of the debt, lawyer for the receivers Murray Tingey told the court.
Petricevic has claimed the debt is wiped out by a $1.1 million golden handshake he is owed. Tingey said the funds Petricevic claims all relate to the period after Bridgecorp went into receivership.
The receivers also say they now have court action pending seeking in excess of $3 million from Petricevic.
After gaining last month's summary judgment the receivers obtained a High Court order enabling them to send bailiffs to the Petricevic family home at 253 Remuera Road on June 27. The bailiffs videoed assets in the home and seized the Porsche. "This was a considerable and distressing intrusion," Dale told the court.
Petricevic claims everything is either owned by his wife or the family trust.
IN THE GUN
* Rod Petricevic is the founder of finance company Bridgecorp, which collapsed a year ago owing investors $458 million.
* Receivers are seeking $661,333 from him as repayment for a personal tax bill Bridgecorp paid in September 2006
* They also have court action pending seeking another $3 million from him.
* Meanwhile Petricevic faces criminal charges under the Securities and Companies Acts.
* The Serious Fraud Office and Securities Commission are also investigating Bridgecorp.
