A High Court judge has called for an investigation of the financial affairs of trail-blazing bar and restaurant developers Mark and Penny Burt who have been bankrupted over a multimillion-dollar debt.
In a judgment after a hearing at the court in Napier a fortnight ago, Associate Judge David Gendall expressedsurprise that in financial statements the couple had nothing to show for their franchise and intellectual property rights of the Breakers and Rosie O'Gradys chains they established.
He said it was "in the public interest here for a detailed inquiry and investigation", in a decision in favour of bankruptcy applicants Anca Properties and bar operator Ken Wheadon released this week.
Owed $174,100 and $126,000 respectively, they are among seven creditors owed a total of $5.7 million, guaranteed by the couple.
Among the companies were Masonic Hotel Napier (now in liquidation) and Breakers New Zealand Franchising, which changed its name to CL 2010 (also now in liquidation).
The judge was concerned the couple did not make "full and complete" disclosure to creditors, omitting asset details and detailed history of recent interests.
They claimed just $28,300 in assets, but lived in a home valued at $559,000 owned by a family trust, which also owned a company now running Breakers in Napier, and which also employed them.
