Particularily frustrating
"Kea has managed to identify and compel payment from various assets, and has thereby obtained comparatively small sums toward the judgment debt but is still owed the vast majority of it, and has found it difficult to locate, let alone execute against any substantial assets.
"This is particularly frustrating for Kea as Watson formerly allowed himself to be represented as one of New Zealand's wealthiest men but now claims to be impecunious," the judgment dated March 3 said.
In a decision shedding light on the various international entities linked to Watson's Cullen Group, the UK court has reviewed Gibson's assets, as Glenn's legal team wants to join him to the claim.
Gibson has been defending the claim using a British Virgin Islands company, Ivory Castle, which Glenn says is basically a nominee for Watson's interests.
Glenn went to court asking for freezing orders over Gibson's assets and asking the court that he pay his legal bills out of his own money first, not using money allegedly held for Watson.
According to the judgment, the legal costs of Gibson and Ivory Castle includes £550,000, which has already been paid. The defence also owes £850,000 for billed work, while the cost of going to trial is estimated at another £2.4m.
"It seems to me plainly more just that the interests of the defendants should be defended at the cost of Mr Gibson rather than at the cost of the fund in dispute which is the very subject-matter of the proceedings," the judge said.
Existing assets
Gibson's existing assets were briefly canvassed by the court as totalling more than £3m and including cash assets, shares in Long Blockchain Corp, a loan from Gibson's family trust worth about £580,000, an investment in Sam Watson's (Eric Watson's son) company, Breathe International, and various valuable works of art and watches.
Gibson's family trust also had two Auckland residential properties and a plot of land in Queenstown, which combined was worth $4.5m but subject to mortgage facilities.
The judge indicated Gibson should get his family trust to support him.
While the judge said Gibson should use his cash assets, he stopped short of requiring Gibson to liquidate others. The judge said while he knew little of Sam Watson's company, Breathe, "it is unlikely to be easy to sell or raise money on shares in a startup founded by a 25-year old."
He said it would be unjust to make Gibson sell art and watches in case he ended up defeating Glenn.
Instead, the judge suggested that before Gibson was allowed to spend any of the disputed funds that he undertake a personal liability to Kea and give security over his and his family trust's assets.
Conspiring
Glenn's lawyers have also alleged Watson and Gibson have been conspiring with each other to defeat Kea's claims, including "the discovery of what Kea characterises as very strong grounds to believe that Watson and Gibson have been destroying and suppressing electronic documents so as to avoid giving proper disclosure."
The judge noted there was a large quantity of evidence filed on that issue but said it was not the right stage in the claim for him to rule on it, and he had presumed Gibson had defences that would merit a trial. Both Glenn and Watson did not respond to emailed requests for comment.
While Glenn has the UK judgment against Watson, 21 New Zealand companies associated with Watson, 13 of which are directed by Gibson, are being scrutinised by liquidators here.
In her first report, KPMG's Vivian Fatupaito noted Cullen Group "is part of a complex structure of entities that spans New Zealand and offshore jurisdictions, including the British Virgin Islands, the UK and the US."
