Paterson bankrupted again

Garth Paterson's latest bankruptcy was related to his personal guarantee of the mortgage for GLW's attempted subdivision of 24.3ha on the Tukituki River's Horseshoe Bend.

Former GLW director Garth Paterson, already bankrupted in Australia, was also bankrupted in the High Court in Wellington yesterday.

Mr Paterson's latest bankruptcy was related to his personal guarantee of the mortgage for GLW's attempted subdivision of 24.3ha on the Tukituki River's Horseshoe Bend, near Havelock North.

There were two orders made by the High Court yesterday. The first was a summary judgment against him for $3.8 million relating to the mortgage debt, interest and costs. The second was for an order adjudicating him bankrupt for unpaid court costs relating to a previous court case.

When GLW first defaulted on its Horseshoe Bend mortgage Charlie's Juice Company co-founder Stefan Lepionka was worried he would lose a $463,000 deposit paid for four subdivision lots.

Last year he bought the mortgage off Westpac Bank and become Mortgagee in Possession of the property.

While Mr Paterson has been bankrupted for the mortgage default, GLW has so far staved off liquidation attempts.

In February the High Court in Napier said GLW owed an undisputed $60,000 to three parties other than Lepionka's company and if not paid by a March appearance before the court then liquidation would likely proceed.

In March Mr Paterson presented the court with bank cheques for the undisputed debts.

The disputed debt, to Mr Lepionka's company, was set down for a defended hearing on May 10 in the High Court in Wellington.

In February the High Court in Napier heard the debt GLW owed to Mr Lepionka's company was more than $4 million, making a tabled $3.4 million offer to refinance GLW insufficient.

It also heard there had also been talks between GLW and Black Barn co-founder Andy Coltart, with a view to refinancing.

Mr Coltart worked with Mr Paterson on the early stages of the subdivision and has lived with his wife in the property's original homestead since 2010.

Mr Coltart placed caveats on the title to protect his interests but they were ordered removed by the High Court.

He appealed to the Court of Appeal, with the case heard last month and the decision pending.

Over the Christmas holiday period Mr Paterson stayed at the second house on the property with his ex-wife and replacement GLW director Liz O'Neil.

Mr Lepionka arranged for a trespass notice to be served but police declined to act, saying it was a civil matter.

Mr Lepionka then requested electricity to the house be disconnected and, after a confrontation between a linesman and Ms O'Neil, she was charged with assault with intent to injure for allegedly biting the linesman, to which she entered a not-guilty plea.