Film producer and former Olivado boss Gary Hannam declared bankrupt after leaky Auckland penthouse dispute

Gary Hannam (inset) was adjudicated bankrupt after the Hopetoun St property dispute.

Film producer and avocado oil businessman Gary Keith Hannam has been declared bankrupt after a property dispute.

A body corporate from Auckland’s 9 Hopetoun St pursued the court action.

Associate Judge Paul Cogswell said litigation between the parties had a long history.

He said the case related to disputes over Hannam and Patricia Joy Draper’s penthouse apartment.

The High Court said the G.K. Hannam Family Trust owned the relevant unit.

The judge said Body Corporate 126001 was awarded scale costs and disbursements of $170,534.12 last year.

“The judgment debtors have not met those orders,” Associate Judge Cogswell said in a judgment released last month.

“The judgment creditor issued bankruptcy notices in reliance on the High Court costs award. Those bankruptcy notices were not satisfied.”

The judge added: “In their failure to comply with the bankruptcy notices, both judgment debtors committed acts of bankruptcy.”

The Hopetoun St body corporate sought adjudication of Hannam and Draper as bankrupt.

Hannam and Draper filed a notice of intention to oppose the application for adjudication against them.

“The unit is the only asset of their related trust,” Associate Judge Cogswell added.

“Neither judgment debtor has any personal assets or funds.”

Hannam and Draper offered to transfer the unit to the judgment creditor in exchange for a discharge of all liabilities to it, the judge added.

“There is an independent third party interested in purchasing the unit which, if that transaction proceeded, would repay the amounts outstanding to the judgment creditor.”

The High Court judgment said Hannam gave evidence that he made a transfer of all of his personal property to the “Hannam Trust”, assumed to be the G.K. Hannam Family Trust, in 2020.

“His personal property was gifted to the trust. The trust is administered by a Swiss company,” Associate Judge Cogswell added.

“The unit is known to be suffering from serious weathertightness problems and will require a substantial investment of funds to remediate those issues,” the judge said of the Hopetoun St unit.

The judge said Body Corporate 126001 argued the potential for further investigation might reveal more available assets.

“Second, the public interest in exposing and controlling an insolvent debtor is one which exists quite independently of the separate question of debt collection by his or her immediate creditors.”

The judge said he accepted arguments that it was not in the public interest that a debtor should be able to default on their debts and for there to be no apparent consequence.

“Such an approach would subvert the expectation that individuals will repay their debts. One of the objectives of bankruptcy is to make the debtor accountable for their debts.”

Body Corporate 126001 said Hannam and Draper also owed further sums for the cost of remedial weathertightness work undertaken to their unit, together with interest.

Associate Judge Cogswell adjudicated Hannam and Draper both bankrupt.

The body corporate said the Official Assignee could be entitled to investigate Hannam not only in New Zealand, but also in Kenya and Switzerland.

Hannam previously operated in Kenya with the Olivado avocado oil company.

In 2008, he told the Herald a Kenyan plant could produce four times as many avocados as a Kerikeri plant.

Liquidators earlier this year said Hannam’s address was in Switzerland.

Hannam’s credits as a film producer include Vigil and The World’s Fastest Indian.

Seeka in March this year took over Olivado’s operating assets and said it would launch a new brand.