Kelt pays debt but heat on

Kelt Capital has paid its debt to Inland Revenue but still faces liquidation and owner Sam Kelt faces bankruptcy proceedings.

The High Court in Napier yesterday heard that while Kelt Capital had paid a $335,000 debt to Inland Revenue the company still faced liquidation and Sam Kelt faced personal bankruptcy proceedings for a combined total of $1.16 million.

Inland Revenue withdrew its claim against Kelt Capital, saying the last instalment of the debt had been paid on Wednesday.

But the Southland Building Society has taken up the baton to liquidate Kelt Capital.

Southland was granted leave to file a late appearance in support of Inland Revenue's application and to become joint plaintiff, claiming $943,193.63 was outstanding.

On the government department's withdrawal, Southland was granted special leave to substitute for Inland Revenue in seeking Kelt Capital's liquidation.

Neither Kelt nor his lawyer was in court to oppose the substitution.

Associate Judge David Gendall yesterday adjourned the matter until May 30.

In a separate case a summary judgment was made against Kelt as an individual, for $215,669.39 owed to Project Eight Holdings.

The debt is a result of a personal guarantee for a building development in Clive.

The matter was due to be heard in a defended hearing in February but was adjourned until yesterday following an admission of the debt from Kelt and after a payment agreement was reached.

But with half the debt still outstanding, a summary judgment was made, again in the absence of Kelt or his lawyer.

Hawke's Bay developer Jonathon Wallace was named as a co-guarantor of Kelt's when the matter came before the High Court in November, and Kelt was considering taking legal action against Wallace.

Project Eight is owned and directed by Jason Deane and Jeremy Smith, who together with Wallace own Trinity Group, a hospitality, property and finance company with interests throughout the lower North Island.

In Hawke's Bay it owns the Clive River Bar & Restaurant, Clive Motel and Turks Bar in Havelock North.

Along with Kelt the three were directors of struck-off company Kelt Trinity.

Kelt and Wallace have enjoyed successful horse-racing ventures together.

Kelt was a half-owner of Keltern Stud with his sister Susan Foote but the business was placed into liquidation in March.

Mrs Foote took action after Kelt failed to acknowledge that $313,213 paid to the stud from Mrs Foote's family inheritance was in fact a loan.

Kelt declined to comment on both court cases.