Aftershock for Eric Watson as nine companies move into liquidation

Watson and two entities linked to him have been told to pay more than £43 million to fellow kiwi businessman Owen Glenn. Photo/Greg Bowker

Nine other Eric Watson-linked companies have been moved into liquidation following the collapse of Cullen Group.

Cullen Group was moved into liquidation by court order last week after a High Court judge refused to halt insolvency proceedings against it.

KPMG's Vivian Fatupaito was appointed liquidator by associate judge Hannah Sargisson on December 17. Since then nine other entities linked to Watson have also gone under.

Companies Office records show Cullen Investments was moved into liquidation by its parent.

Bush Inn Properties, which is owned by Cullen Group, is now under the control of KPMG liquidator as are eight other entities.

The others: Batty Road Holdings, Cullen Inc Holdings, Cullen Portfolio, EW Leasing, EGB Holdings, Serious Holdings and Watson Bloodstock are all solely owned by Cullen Investments and are all now in liquidation.

Because those liquidations were shareholder-appointed, KPMG must provide a report before Christmas.

The insolvency proceedings were brought by the Inland Revenue Department which was seeking costs after having obtained a $112 million tax judgment against Cullen Group.

Justice Matthew Palmer, who had also presided over the tax decision, said the insolvency proceedings shouldn't be stopped. In his decision, he said a costs award of some $500,000 shouldn't be enough to tip a company the size of Cullen Group into insolvency unless those controlling it wished it to happen.

In his earlier judgment, he had noted that Cullen Investments' financial statements for the year ending March 31, 2017, showed it then had assets of almost $148 million and total liabilities of just over $73 million.

Separately, Watson and two entities linked to him have been told to pay more than £43 million to fellow kiwi businessman Owen Glenn. Glenn had obtained judgment against Watson, Novatrust and Spartan Capital for fraudulent misrepresentation in their joint ventures. In October, a UK appeal court dismissed Watson's plea to alter the amount of interest on the sum.