Long-running Sorensen dispute settled

Money was advanced to invest in rock-crushing machinery. Photo / 123RF

Investor John Sorensen has settled a longtime dispute with former business partner Michael Jacomb, who tried to get him to reveal his financial affairs.

Jacomb, as trustee of Genset Trustees, advanced millions to Edel Metals Groups, a company owned by Ken Wikeley, which Sorensen was a director of. The company was formed in 2008 to invest in rock-crushing machinery but failed.

After litigation launched five years ago, Jacomb late last year obtained a $700,000 costs award from his former business partner.

In October last year Sorensen said he should only pay costs of $275,000, but his opponent sought $1.02 million.

Chief high court judge Geoffrey Venning reviewed the entire file and awarded costs of $693,323.

Late last year Jacomb took steps to enforce the judgment, moving for an examination of Sorensen's wealth, a step that is usually a precursor to bankruptcy proceedings.

However Jacomb is no longer pursuing Sorensen, as the pair recently settled their beef.

Jacomb said the matter had been settled for an "extremely satisfying" amount and said he was no longer pursuing a management ban against Sorensen.

The Marlborough-based investor said Sorensen "must have had lawyer fatigue" since the claim ran for so many years.

"I can assure you he won't be doing it again because I would expect his lawyers' bills to have been very significant," he said, adding he couldn't be more specific because of the confidential nature of the settlement.

Sorensen declined to comment.

He has been involved in numerous backdoor listings, the most recent being the beauty products firm Me Today, which listed through CSM Group. Sorensen has 12.5 million shares in the company or 3.4 per cent of the stock through APZ.