Serepisos 'has plan B to pay debts'

Terry Serepisos. Photo / Janna Dixon

Wellington Phoenix owner Terry Serepisos has a "back-stop" plan to repay his $4 million debts in case his loan from Western Gulf Advisory falls through.

Mr Serepisos had announced a US$100 million ($135 million) loan from WGA that would allow him to restructure his Century City empire, of which the Phoenix is a part.

However the loan is yet to arrive - with representatives of the IRD saying they have yet to receive any assurances it will.

Sydney developer Keith Johnson has told the Sydney Morning Herald he paid up-front fees of over $4 million to WGA for a loan that never eventuated. The company's owner, Ahsan Ali Syed, has denied allegations that he has not been forthcoming with loans.

The loan from WGA to Mr Serepisos came under the spotlight yesterday when the High Court at Wellington heard an application from the IRD to liquidate five of Mr Serepisos' Century City group companies, which owe the IRD and ACC a total of $4,011,097.

Mr Serepisos, through his lawyer Justin Toebes, did not oppose the application. Instead he filed an affidavit pledging his commitment to paying off his debts and outlined a means to do so.

He asked for a six-week adjournment but Associate Justice David Gendall granted him a reprieve only until Thursday morning.

The IRD, represented by Rocky Meng, questioned the lender and pointed to criticisms of WGA in the Australian press.

The IRD Commissioner has sought assurances from the lender but has not to date had any confirmation of the loan, Mr Meng said.

"The [IRD] commissioner does not have confidence that this amount will come through to rescue the group."

Mr Toebes said Mr Serepisos had a "back-stop" plan: a list of properties as security to satisfy creditors if the loan did not arrive. Among them are Wellington central city apartments and two properties in Roseneath.

Mr Meng also said the equity of the companies was not sufficient to cover the payment.

In response, Mr Toebes said more assets could be added, if needed.

Associate Justice Gendall noted that the length of time already passed was a "concern". He said he was also concerned that Mr Serepisos' companies were continuing to trade, and in doing so were potentially becoming weighed-down by further debt.

Mr Serepisos admitted last week that he has paid a fee to WGA, understood to be more than $1.5 million.

His five companies threatened with liquidation are: Century City Investments, Century City Football - which owns the Phoenix A-League soccer club - Century City Developments, Century City Management, and Century City Hunter Street.

Mr Serepisos was not in court yesterday.