Tuaman funds severely eroded

The bank account of boxing company Tuaman Inc has been decimated since David Tua fell out with his former managers.

Tuaman, which had $773,000 when the boxer "sacked" Martin Pugh and Kevin Barry in July 2003, now has less than $40,000, according to an estimate by High Court judge Hugh Williams.

His estimate was made in a recent hearing during which he made several orders, including that monthly payments of $6500 from the Tuaman bank account to each of Tua and Pugh stop after this month.

Justin Toebes, lawyer for Pugh and Barry, estimated the failure of the parties to agree, until now, to a sale plan for the company's properties was eroding equity by $2000 a day.

A 51.7ha Pakiri block and an apartment are expected to be put up for tender soon. Justice Williams directed that $20,000 from the account be used for the cost of selling the properties.

In other orders last week:

* The way was cleared for a $5 million Takapuna property, owned by a trust of which Mr Pugh's partner, Sally Cross, is a trustee, to be sold. The proceeds of sale - after mortgages and sale costs - is to be held pending resolution of the boxer's claim that Tuaman money was improperly used in the refurbishment and alterations to the property. Tua's lawyers had estimated this amounted to be $2 million but have been asked to produce a more precise figure.

* Tuaman Inc must pay the legal costs of Pugh and Barry ($152,926) for the hearing of Tua's unsuccessful claim that he owned Pakiri outright under express trust. Because there is insufficient money in the account, this is unlikely to be paid until the properties are sold. Tua must reimburse a proportion of this cost to Tuaman, but because he has insufficient funds, that has been deferred until resolution of all financial matters.

* Tua must comply by the end of this month with an order freezing earnings from his successful comeback bout against American Talmadge Griffis.

The main dispute between the parties is unlikely to be heard until next year. Tua is challenging the legality of the exclusive management contract (EMA) he signed with his managers.

If Tua wins, it might follow that a large proportion of the company's assets will be assessed as his. If he fails, Pugh and Barry might be able, under the contract, to claim their cut of earnings from fights after they were "sacked". Tua's lawyers have until October 21 to file details of the EMA claim. Pugh and Barry then have three weeks to respond.