KEY POINTS:
Alan Duff has made a last-ditch attempt to avoid bankruptcy but a creditor is vowing to get the Once Were Warriors author declared insolvent today.
Bankruptcy proceedings against the 57-year-old are due to continue in the High Court at Napier this morning.
The proceedings were adjourned from last
month to allow the creditor, Mutual Finance Group, to consider a proposal from Duff.
But John Waymouth, lawyer for the Auckland financier, yesterday told the Herald that the only proposals that had come from Duff had been woefully inadequate.
They had included a last-minute communication from his lawyer yesterday afternoon saying the author had $2.7 million of debts and only $5000 of assets.
"They want a moratorium, which we're not willing to give," Mr Waymouth said.
He said Mutual Finance doubted Duff's claims that he could not repay his debts because any time anyone bought one of his books, or movies of his books, the author received a royalty payment.
"These are moneys that should be applied to all of his creditors, not towards his lifestyle.
"We will be bankrupting him."
Duff is not required to appear at today's hearing.
His lawyer, Gerald McKay of Napier, would not comment, citing client confidentiality and the fact the case was before the court.
Mutual Finance first took action against Duff in the Hastings District Court and on January 18 succeeded in getting an order for repayment.
The author had borrowed $300,000 to buy a property in his hometown of Havelock North in 2006 which he later sold.
He repaid Mutual $306,000, but still owed $32,000, which has now grown to more than $36,000 through fees, penalties and interest.
Duff had already been forced to sell his $3 million home in a mortgagee auction in December.
Mutual Finance is also investigating the possibility of irregularities in the original loan documentation he submitted to the company.
At the last court hearing on July 24, Mr McKay said Duff was overseas arranging a new book deal, which could provide him with a means to repay the debt.
But Mr Waymouth said that in the past month, the only proposal for settling the debt had come from Duff's brother, Nick. Mr Waymouth would not reveal publicly the amount Nick Duff had offered, but said the offer was "derisory".
Associate Judge David Gendall, who presided over the last hearing, indicated he was giving the author a final chance to satisfy his creditors.
The judge said if Duff had not done so by today, then a bankruptcy order would likely be made.
