Serepisos staves off liquidation

Terry Serepisos. File photo / Natalie Slade

It could be game over tomorrow for Terry Serepisos, property tycoon and owner of Wellington Phoenix A League football franchise.

Although just under $4 million was put in his lawyer's trust fund early today, the beleaguered businessman could have the whistle blown on him if his debts are not paid in full tomorrow.

In early March, Mr Serepisos was granted a fifth adjournment by Associate Judge David Gendall in the High Court at Wellington as he scrambled to raise money to prevent five of his Century City companies, including the Phoenix club, being put into liquidation by the IRD.

The judge made it clear then that things could not "be allowed to simply drift" and indicated the final deadline would be today.

But this morning, despite the court being informed of the last minute multi-million payment from an undisclosed "external" source, Century City lawyer Justin Toebes sought further time.

Asking for the case to be stood down until May 23, he said the defendants would be making payment of future debts falling due by then.

Judge Gendall asked about the source of the trust fund deposit and was told it was a New Zealand trading bank cheque.

He reiterated that he had made in clear in early March that the debts should be fully cleared by today.

"That has not been done."

The judge said that the five Century City companies before the court were "presumed to be insolvent" but were continuing to trade.

He reluctantly consented to a sixth adjournment, but only for 24 hours, stipulating that the debts must be paid in full tomorrow morning.

Mr Serepisos, who was not in court, owes more than $3.5m to Inland Revenue. including PAYE and KiwiSaver contributions for Phoenix players.

ACC is also owed more than $355,000 by the Century City football company and $95,000-plus by Century City Developments.

Mr Serepisos had said he was negotiating a $US100 million rescue package from controversial offshore lender Western Gulf Advisory.

Meantime, it was indicated today that, while prepared to settle the debts, the companies wanted a remission of some penalties and interest on them.

IRD lawyer Rocky Meng said the funds of around $4m were "not sourced from the judgment debtor" and the Inland Revenue Commissioner would need to be sure it was not going "to be clawed back".

Outside the court, Mr Toebes would not comment on where today's events left Century City.

"I'm only the lawyer," he said.

- NZPA