Amazing journey for statutory manager

When Bruce Stowell was appointed one of four statutory managers to handle the wind-up of Equiticorp's New Zealand affairs in January 1989, he never dreamed he would still be on the case almost 22 years later.

He and the other managers - Fred Watson, Kerry Stotter and Gerry Rea - are in their 70s, with successful careers behind them. As statutory management is a personal appointment by the Government of the day, it is a job that lasts as long as it takes.

Not that Stowell, who is the key manager dealing with Cheah Theam Swee on behalf of Equiticorp Holdings debenture-holders, has any regrets about taking on the job. He says it has been an amazing journey.

"Even if I had known it would take this long I definitely would have taken it on as it's such a great opportunity."

Stowell is pleased the managers have been able to recover so much money for debenture-holders. In the early days they got a 100 per cent return for Equiticorp Finance investors, enabling the company's liquidation and leaving future returns for investors in the the holding company.

"We've clearly covered big ground," says Stowell, who has received many heartening letters from investors.

He has many tales - like the sale of Equiticorp-owned apartments in Victoria Ave, in Auckland's Remuera. Offers had been ridiculously low, so he took them off the market, much to the alarm of the estate agent. By the end of the week he had sold two at market prices.

"I'd read a book the weekend before on Chinese proverbs," he laughs. "One said if you want to make something valuable make it scarce."

Without Equiticorp what would Stowell be doing? Playing more and better golf, he says, and spending more time with his grandchildren.

These days Equiticorp business takes him an average of three hours a week, sometimes just half an hour.

Former Equiticorp accountant Conway Paton is the full-time administrator of the company's affairs, while Fred Watson is the overall statutory manager. Stowell focuses on the financial side, Gerry Rea on property, and Stotter, investments.

For decades, Stowell has been involved in the marathon bid to force the sale of land in downtown Kuala Lumpur, in the hope of releasing more money to return to investors.

He says he expected a fight over the land because the one-time big borrower from Equiticorp, Cheah Theam Swee, now 77, is a barrister and former Malaysian Government minister who already had a history with Equiticorp in the courts over the unpaid loan.

"But no, I never thought it would take this long," he says.

Stowell says the real estate market over the years has had its ups and downs, first with the Asian financial crisis and lately with the global meltdown.

"But now, yes I would like to think it is good timing to get a sale of the land."

There is a chance it may be worth more than $80 million but Equiticorp is not the only creditor. Plenty of other players are also circling for their share of any proceeds.