Property developer Andrew Krukziener's debt to troubled Hanover Finance has ballooned to $6.9 million, thanks to 18 per cent monthly compounding interest.
Hanover is attempting to bankrupt Krukziener over a loan of $4.15 million dating back to 2002.
Yesterday in the High Court at Auckland, Justice Patricia Courtney ruled that Krukziener must pay 18 per cent interest, as per the terms of the loan, from March 27, 2006 until it is repaid. As of yesterday that interest bill stood at $2,822,187.08.
Hanover's two-year court battle to recover the loan from Krukziener or have him face bankruptcy was adjourned yet again yesterday. Its application for an adjudication of bankruptcy will now be heard on March 5.
Unless Krukziener comes up with the money before then it looks as if his options may have finally been exhausted.
In November, he sought a stay of the bankruptcy application while he took the matter to the Appeal Court. But yesterday the High Court was told that stay application had been withdrawn. Meanwhile, he argues Hanover actually owes him $86,000 more than the original loan, and is taking action that is due to be heard in court later in the year.
In a separate case, Inland Revenue is pursuing Krukziener for a $700,000 tax debt owed by his company AK Oriental. Earlier this month he applied to have the IRD's action struck out. The court's decision is pending.