Hobbling Watson: Skiing can be a danger

Eric Watson. Photo / Olivia Hemus

Eric Watson is "up and about" in a Swiss private hospital after fracturing his back in a skiing accident.

Speaking to the Herald last night from Zurich's exclusive Hirslanden Clinic, the multi-millionaire co-founder of Hanover Finance was in good spirits.

"It's just a little fracture," he said. "I'll be fine ... It will take a while but I should be fine in a few weeks, couple of months, it takes a while to recover from these things."

But he would not say how or where the accident occurred.

"Skiing can be dangerous ... If I tell you it will just perpetuate a story," Watson said with a laugh. "The story's very straightforward ... I had an accident and I'm expecting a full recovery ... it just takes a little bit of time and effort."

He praised the "very good surgeons" in Switzerland, and said his surgery - although he wouldn't specify what it was - had been "very impressive".

Watson confessed his German was limited to "danke schoen" [thank you], "bitte schoen" [you're welcome] and ordering a beer.

He is known for his love of the high-life, including horse-racing, casinos and skiing.

But Watson is unpopular at home in New Zealand after it emerged he took big dividends out of Hanover - $91 million between him and co-owner Mark Hotchin - in the years before it defaulted on payments to investors.

Last night he was candid about flak over the fall-out.

"Oh I think Mark's [co-founder Mark Hotchin] taken most of that [flak]," he said. "Compared with what's come out since Hanover, Hanover's probably done a better job than most finance companies at least giving people the chance to recover their money through the Allied Farmers share price performance, which over time might be quite positive."

Yesterday there was little sympathy over his injury from those still struggling financially after the collapse. New Zealand Shareholders Association chairman Bruce Sheppard said everyone wished Watson a speedy recovery - "especially all those Hanover investors whose backs remain broken".

Mr Sheppard said he would not wish such injuries on anyone, but found it hard to be sympathetic.

"I was going to suggest sending flowers; apparently lilies can cause an allergic reaction."

Hanover left more than 16,000 investors out of pocket when it froze more than $500 million worth of assets.

Those assets were acquired by Allied Farmers in December last year as part of a debt for equity swap.

Glen Stanton and his family had $255,000 invested in Hanover.

Their investment was now in the form of "about a squillion worthless Allied Farmers shares".

"I've not got a hell of a lot of sympathy for Eric lying on his back. He's tough enough to get into a fist-fight with Russell Crowe but not tough enough to front up to investors here," said Mr Stanton, referring to a punch-up between Watson and the Hollywood actor in the toilets of a London club in 2002.

Watson was criticised by Hanover investors last year when he failed to return to oversee the Allied Farmers deal.

Mr Stanton, who also had investments in 29 other finance companies, said he had enough money to get by and could be thankful for his health.

"I'm 61 and fit and healthy, and I'm off to play golf tomorrow. I might not have much money but I have my health and my back is fine."

Watson, who has lived in London since 2002, was expected back in New Zealand next month to catch up with the Warriors rugby league team, which he part-owns.

His other interests here include private investment company Cullen Investments, lingerie company Bendon, race horses, movie ventures and Soul Bar at Auckland's Viaduct.

Watson, who has children Lucas and Leon with Swedish-born Lisa Hendrickson and a son, Sam, from another relationship, kept a low profile on his last return early in the year.

His reputation as the one-time golden boy of New Zealand business has nose-dived over the past few years.

In 1999, the term "the Watson factor" referred to investors piling into companies as soon as they saw him taking a stake.

Watson later featured in several episodes of litigation and controversy.