Bruce Judge re-emerges from corporate exile

New Zealander Bruce Judge, whose companies Judge Corp and Ariadne were iconic symbols of the 1987 sharemarket boom and crash, has re-emerged from corporate exile in Australia.

According to reports in today's Sydney Morning Herald, Mr Judge has emerged from 14 years of obscurity to take a controlling stake in ailing Australian stain removal and detergent company Big Kev's.

The news sparked a surge reminiscent of the 1980s boom in the shares of the near dead listed company.

The previously lifeless shares surged to life yesterday, the price tripling from A5c (NZ5.6c) to close at A15c, having touched A28c during the day.

Big Kev's, founded by colourful Gold Coast property developer turned cleaning products salesman Kevin McQuay, has been in the red for most of its short, listed life and its shares, issued at A50c, have never performed.

"There's not much left in the shell of Big Kev's but at least it's clean," Mr Judge told the newspaper.

"So now I've taken this on and now I'm in the public limelight; you know I'm determined this thing will be done very, very well."

Mr Judge transformed Ariadne from a loss-making Brisbane quarry into a billion-dollar conglomerate before presiding over a then-record Australian loss of $A640 million ($NZ715 million) in 1988, a result that led to a public inquiry and his resignation.

Judge Corp in New Zealand collapsed with debts around $350m.

Mr Judge, a devout Christian who has spent most of the last decade in France with his wife and two daughters, was investigated but never charged with any offence.

A number of entrepreneurs on both sides of the Tasman who ran similar types of investment companies, including Alan Bond of Bond Corp and Allan Hawkins of Equiticorp spent time in jail for fraud.

Mr Hawkins has also rehabilited himself from corporate exile this year. He had taken executive and financial control of listed company Rocom Wireless, whose shares also surged on news of his elevation.

The Sydney Morning Herald said Mr Judge distinguished himself from other investment entrepreneurs by running into financial difficulties even before the '87 stockmarket crash.

Mr McQuay yesterday announced he had sold 8 million of his 14.2 million shares to Mr Judge and was resigning as chairman, chief executive and managing director.

Big Kev's Australian-made cleaning products have failed to find a wide market since its 2001 float and are not expected to feature prominently in the company's future, the SMH reported.

Mr Judge plans to remove Big Kev's name and change its business from stain removal to niche lending.

Mr Judge was philosophical about his past.

"It's one of those experiences I've learned a lot from and prepares me better for what I've got ahead of me," he said.

A former New Zealand hockey Olympian, he was one of Sir Ron Brierley's acolytes in the halcyon days of Brierley Investments in the 1970s.

In 1979, Mr Judge and foremer BIL chief executive Paul Collins decided they could do better that Sir Ron, leaving the company to to set up a small investment company. Financed by Cyril Smith, a wealthy Christchurch timber merchant, Mr Judge and Mr Collins used the magic they'd learned from Sir Ron: buying assets, improving them or breaking them up, and flicking them on for profit.

The took over listed company broom and brush company Bunting - a not dissimilar company to Big Kev's - which became their investment vehicle.

Buntings bought shares in building products companies Odlins and Winstones but after creating a mini-rival to BIL they accepted a friendly takeover in late 1982 from Sir Ron and returned to the fold. Soon after, Mr Judge departed to set up another investment company, Ariadne and later Judge Corp.

- NZPA