Developer dumps plan

Nigel McKenna. Photo / NZ Herald

Embattled billion-dollar developer Nigel McKenna has suddenly ditched a creditors' compromise scheme.

In a surprise move after more than two years opposing Fletcher Construction over an $800,000 payment for a $100 million Wellington hotel, the Aucklander has backed away from his repayment plan.

McKenna wanted to return just over $1 million to creditors claiming more than $100 million.

But now, instead of trying to get creditors to agree to that, McKenna dropped the scheme yesterday.

Graeme Christie, the Simpson Grierson partner trying to bankrupt the Lighter Quay developer, said he only received notice of McKenna's move yesterday. A letter from insolvency specialist Meltzer Mason Heath announced the switch.

"[I'm] not 100 per cent sure what he intends next," Christie said.

The High Court at Auckland is due to resume hearing McKenna's bankruptcy case on Tuesday at 10am.

Anne Gibson