Auckland property developer David Henderson is seeking approval for a plan to pay his creditors in a bid to avert bankruptcy.
In the High Court at Auckland yesterday, Henderson was cross-examined on the tax history of his companies over the past decade by Inland Revenue lawyer Nischal Malarao.
The Bank
of Western Australia (BankWest), Downers and IRD have opposed the application that would allow Henderson to drip-feed unsecured creditors $1.5 million over three years.
BankWest claims it is owed $22 million. While Henderson concedes the bank is owed money, he says it is considerably less than the amount the bank has claimed.
Downers is owed $4 million, while the IRD is owed just under $3.7 million.
A third creditor, Henderson's ex-wife Rochelle, initially opposed the application but has now agreed to support the creditors' payout - she initially claimed $7 million.
Henderson, who was the developer behind about $1 billion of real estate, told the Business Herald in March that agreeing to bankruptcy would be "cowardly" and way too easy - he also said he would fight for his corporate life.
Creditors are seeking about $166 million from the Princes Wharf developer.
In March, Henderson met creditors at the Northern Club, in Auckland, and put a proposal to them under the Insolvency Act which would give him more time to find money.
Marc Lindale, an executive director of Strategic Finance (in receivership), is claiming about $1 million via one of his companies.
The deal is being proposed under part five of the Insolvency Act 2006 and would mean creditors, including IRD, would be forced to delay moving against him to claim money for personal guarantees he made, particularly over Princes Wharf leasing deals.
Henderson said creditors had full access to his financial accounts and that he was taking an "open book" approach.
The hearing continues but no date for resumption has been set.
