Harman made bankrupt as liquidators mull legal action

Auckland company director Ed Harman, whose business activities have left dozens of his well-heeled friends and acquaintances millions in the red, has been bankrupted.

At the same time the liquidators of five companies related to him say they are considering legal action against him for possible breaches of his duties as a director under the Companies Act.

Harman was adjudged bankrupt in the High Court at Auckland last week on the petition of a creditor owed "hundreds of thousands" of dollars.

The bankruptcy means his affairs are now in the hands of the Official Assignee.

Harman is indirectly a quarter shareholder in upmarket Auckland restaurant Mikano and a former owner with his father of successful North Shore boat equipment business Maxwell Marine.

His complex web of businesses includes healthcare software development, escalator advertising, the management of residential rental property and investment in overseas shares.

It is far from clear how much is owed but one estimate has put the losses as high as $30 million.

In their latest reports on the five failed companies, the liquidators say they have had trouble figuring out the financial position because the companies have not completed final accounts since March 2005.

They say many of the companies' assets are shares in and loans to associated entities including Harman, and shares in failed or delisted companies - some of them overseas.

The five companies in liquidation are: Fairthorne Ventures; Fairthorne Trading; Fairthorne Investments, which owns both Fairthorne Ventures and Fairthorne Trading; Paeroa Investments; and Wake Investments.