Developer wins time to stave off bankruptcy

David Henderson. Photo / Steven McNicholl

The Aston Martin and Bentley have been swapped for a $5000 Nissan Safari and the luxury $10 million waterfront Auckland penthouse is now worth only $3 million, encumbered with a whopping $5 million mortgage.

Property developer David Henderson has been hit financially but still appears drinking champagne in the social pages and yesterday succeeded in getting more time to save himself from bankruptcy.

The High Court at Auckland allowed him another few weeks, staving off opponent creditors Inland Revenue and Bank of Western Australia, which are seeking to put his financial affairs in the hands of the Official Assignee.

Henderson, with claims against him from creditors of $127 million, said on Monday he had won support for a $1.5 million partial repayment scheme, with backing from 50 per cent of creditors by value and 75 per cent by number to ensure he complied with the law.

Bankruptcy will ruin the plan, he says, adding he has been fully transparent and has no assets salted away.

"The two cars that I drove, namely a Bentley and an Aston Martin, have been returned to Giltraps Prestige and GE Finance respectively. Both the Bentley and Aston Martin have been sold," he said.

He now drives the Nissan and his affidavit showed how he had tried to sell the apartment on level eight of the Hilton Hotel where Guardian has a $5 million security and were considering quitting via a mortgagee sale. The apartment is owned by Shed 21 Leases and has a Property Law Act notice issued against it, he said.

Daniel Grove, Henderson's barrister, is seeking court approval of the creditors' scheme which will see Henderson repay $500,000 this June, the same next June and the final amount next December, while drawing $75,000 a year as a property consultant.

Inland Revenue is claiming $3,686,559.53 and its counsel Nick Malarao questioned whether Henderson had got past the requisite threshold on his scheme of arrangement. He opposed any adjournment, saying the debt dated back two years and he wanted to proceed.

He was supported by Kensington Swan lawyer Lynne Van, acting for the Bank of Western Australia and Downer Construction.

The bank wants $18,705,423.75 and Downer about $4 million.

But Associate Judge David Abbott scheduled a timetable for documents to be filed this month and a hearing to be set towards the end of next month to decide Henderson's fate.

The case has been adjourned to the week of May 30 for clarification of issues on what is his second compromise proposal.

He developed the wharf and many other projects including the high-rise Precinct Apartments near Albert Park.

He wants to work as a consultant on the redevelopment of Victoria Park Markets, which he once owned, to earn $75,000 a year to repay creditors.

Bankruptcy, he claims, will leave creditors with nothing.

"I have negligible personal assets," he said, listing the Nissan with $10,000 of furniture and chattels as being under his control.

He told how in 2003 he had separated from his wife Rochelle Henderson and struck a deal to pay her "sums and maintenance", confident at the time he could meet these. She is now claiming $5,631,785.29 and Henderson said he was no longer able to meet payments.