Andrew Krukziener bankrupt

Andrew Krukziener. Photo / Greg Bowker

Metropolis developer Andrew Krukziener has been bankrupted after surrendering to Inland Revenue's $6 million application.

Krukziener fought for a year to come to a deal with IRD and his other creditors but in the end he succumbed to bankruptcy.

His lawyer, Bruce Stewart, QC, said Krukziener finally "threw in the towel" after the ordeal became too much.

He had initially hoped to gain court approval for a deal that would have drip fed $320,000 to his creditors, to which he owes a collective debt of $47 million.

Krukziener, who has been at the helm of more than 90 developments in Auckland, through his property company Krukziener Properties, got into serious financial strife due to the Metropolis project.

It was supposed to be his retirement scheme instead it sunk him for $25 million of his own money.

Stewart said Krukziener has been candid with the court, had co-operated with the court and IRD to reach a resolution and in the last few days had been in contact with the Official Assignee (OA) to discuss his pending bankruptcy.

Stewart said the state of his appeal against a Taxation Review Authority (TRA) decision that ruled loans Krukziener paid himself through his trust should be classified as income and taxed will depend on the OA.

The OA will now investigate Krukziener's affairs and take control of all his assets.

Krukziener was advised to enter bankruptcy in 2001 after the financial failure of the Metropolis project but he dismissed this advice saying he wanted to do right by his creditors.

Krukziener was not present in court this morning.

Associate Judge John Faire closed the case after Krukziener handed himself in to the Official Assignee yesterday.

Krukziener has had high profile support, former Auckland mayor John Banks said Krukziener had respect for the city's heritage and had been a part of the growth and beautification of Auckland.

Krukziener will be under the OA's control for three years. He will need to seek permission to leave the country. He will not appeal the High Court's decision.

In a 2008 Herald on Sunday interview, Krukziener described how the failure of his ambitious Metropolis project - a 38-story downtown Auckland apartment complex - damaged his commercial reputation and cut his then $30m fortune.

He said he hoped "to build more beautiful buildings" and that that he "doesn't do ugly buildings no matter what the profit."

"I feel a moral responsibility as a developer. You are creating the city in which you live. If you're going to do it, do it properly."