Developers granted extra week to sort repayment offers

David Henderson. Photo / Steven McNicholl

Two prominent private Auckland developers facing creditor claims of about $250 million have both got more time to fine-tune their partial repayment offers.

Yesterday, David Stewart Henderson got a week's reprieve before he faces his creditors, while on Friday, Nigel Anthony McKenna also got another week.

Both are facing bankruptcy proceedings, have completed more than $2 billion worth of private developments but came unstuck in the financial downturn, their assets and income outstripped by repayment demands they are unable to meet.

They now want to drip-feed small amounts of money over a period of years to escape the financial noose. The two are not connected and only share a quirk of timing as creditors close in.

Henderson's creditors now meet on Monday while McKenna's are due to meet this Friday.

Henderson has claims against him of $105 million and is offering to repay $1.5 million, while McKenna has claims of $153.6 million and is offering just $1.25 million, their schemes show.

A disgruntled Graeme Christie, the Simpson Grierson partner representing McKenna's creditor, the Fletcher Construction Company, was annoyed about further delays which he said was at the behest of insolvency specialist Jeff Meltzer of Meltzer Mason Heath.

"Mr Meltzer [delayed] without consultation and still has declined to say which creditors requested a week delay until April 15. There is also still no evidence of the third-party guarantee of $600,000 payable over two years despite our request for a copy of it. The next court date is April 19," Christie said.

Fletcher wants about $800,000 from McKenna as the final payment for a $100 million Wellington hotel.

His creditors were due to meet last Friday at Meltzer's office while Henderson's were due to meet in Auckland yesterday.

Henderson, whose biggest development was Auckland's cruise ship-styled Princes Wharf Hilton Hotel project, said creditors would vote on Monday.

The developer of Precinct Apartments near Albert Park and ex-owner of Victoria Park Markets, he is facing financial demands from Inland Revenue and others who want to bankrupt him.

At issue is about $105 million in debts of which Henderson is planning to repay only about $1.5 million.

He is hoping for success next Monday after being asked to supply more information yesterday.

"I'm quietly confident. I'm not busting the walls down but we've got good support. Obviously, it depends on the day," he said.

"The meeting was postponed for a week simply because IRD had a number of questions which they needed to be answered and also one or two of the creditors wanted a bit more time."

IRD was seeking technical information and details of other creditors' positions, he said.

NOOSE TIGHTENING

David Stewart Henderson

* Claims: $105 million

* Proposal: Repay $1.5 million

* Creditors: Meet next Monday

Nigel Anthony McKenna

* Claims: $153.6 million

* Proposal: Repay $1.25 million

* Creditors: Meet on Friday