KEY POINTS:
Fallout from the troubled Vector Arena continues as a dispute between two parties involved in the project heads to court.
The receivers of a failed American company that was part of the consortium appointed to run the arena is taking legal action against the consortium's Australian operators.
The
action aims to establish how much money the failed company invested, which the receivers can then try to extract.
Worldwide NZ, part of Jack Utsick's failed Miami-based business Worldwide Entertainment Group, was part of Quay Park Arena Management (QPAM), the consortium that has the contract to run the arena.
The 12,000-seat venue opened in March after a troubled history including cost blowouts, delays and hostility between builder Mainzeal and QPAM.
Last year, Utsick quit as a director of QPAM after his company went into receivership and US authorities took legal action against him and his partners over fund-raising ventures.
Utsick was charged with making a fraudulent offering, involving investments in concerts, that raised more than US$300 million ($380 million).
Worldwide was the minority shareholder in QPAM and now its receiver is taking legal action to sort out the departure of Worldwide from QPAM and the value of its involvement in the Vector Arena deal.
QPAM's directors are Australians Kevin, Colin and Amber Jacobsen and arena chief executive Bruce Mactaggart, who lives in Auckland.
Michael Goldberg of Fort Lauderdale, Florida, who was in Auckland yesterday, is the court-appointed receiver for Worldwide and is winding up various international interests.
Goldberg claims that Worldwide sank US$3.9 million into the arena.
Yesterday, lawyers representing Worldwide, QPAM and others met in the High Court at Auckland before Associate Judge Jeremy Doogue for a case management conference.
Auckland City Council worked with QPAM to develop the arena.
QPAM is owned by the Sydney-based company Jacobsen Venue Management, which operates the Sydney Entertainment Centre and Sydney Capitol Theatre.
Worldwide Entertainment, the Entertainment Group Fund and their principal Utsick were charged in the US last year with improperly raising US$300 million from 3300 US investors by selling investments in shows featuring performers such as Shania Twain and Aerosmith.
The charges say Utsick's investors were told they would make as much as 15 to 25 per cent a year, even though many of the projects lost money.
As a result, long-time investors were paid with money from new investors, the charges claim - a system known as a Ponzi scheme.
Vector Arena's operation is not affected by the legal action.
The Parties
The legal dispute involves Quay Park Arena Management, running Auckland's Vector Arena.
QPAM's shareholders were:
* Worldwide NZ: Part of Jack Utsick's Worldwide Entertainment Group (in receivership).
* Sydney's Jacobsen family, who operate major Australian entertainment venues.
Utsick's companies are in receivership and he left QPAM last year. Now, an American receiver is attempting to value his involvement in the Auckland venture.