Chow brothers escape liquidation

John Chow of the Chow Group. Photo / Paul Estcourt

Property developers and brothel owners Chow Group have escaped liquidation over a $875,000 debt to engineering firm Clearwater Construction Ltd.

Wellington High Court judge Stephen Kos last week granted an adjournment so Michael and John Chow could pay up.

He made an order freezing funds in their lawyer's trust account except for the amount owed to Clearwater.

The follow-up court hearing set down for today was vacated after the judge issued a minute yesterday dismissing the liquidation application.

Clearwater Construction's attempt to appoint a liquidator was "at an end," Chow Group counsel Justin Toebes confirmed to APNZ this afternoon.

Asked if that meant the company had paid the $875,000 owed he said: "I can't tell you that."

General manager of Clearwater Construction Martin Fahey could not be reached for comment.

In court last week, Mr Toebes said it was "absolutely fundamental" that there was no record a liquidator had been appointed. The Chows could not accept such an "intolerable prejudice."

They had refused to pay Clearwater the fifth instalment for work on Auckland's Palace Hotel opposite Sky City Casino.

Last November Auckland City Council ordered the hotel building removed after it started to collapse during construction of a high-rise brothel.

Last month the Chows tried, but failed, to have a building dispute adjudication - which prompted the liquidation proceedings - thrown out. They have appealed.