The High Court has put Auckland apartment developer Du Val Capital Partners and other Du Val Group companies into interim receivership. Video / Alex Burton
The Financial Markets Authority and PwC case against townhouse and apartment developer Du Val and Charlotte and Kenyon Clarke has been set down for a three-day hearing in the High Court at Auckland in June.
Justice Jane Anderson issued procedural directions in the case last Thursday.
She held atelephone conference during which she set timetabling in the now-protracted matter where there are 67 respondents including Du Val Group, the Clarkes, Du Val Mortgage Fund and Du Val BTR GP.
Justice Anderson set a time for when the Clarkes had to state if they had legal aid and gave them opportunities to file submissions opposing actions against them and their many companies.
The Clarkes have applied for legal aid to cover the cost of lawyers representing them in court after they were each permitted living expenses of $1500 a week.
The dates are:
February 14: Update on the Clarkes' legal aid position due;
March 7: Receiver PwC to provide an update to court;
March 21: FMA to file any updated affidavit evidence in support of its application;
April 16: Clarkes to file notice of opposition and affidavits;
May 9: FMA to file any evidence in reply;
May 30: Clarkes to file submissions in response;
June 16: Three-day hearing to commence.
The timetabling follows events in August when on the FMA’s recommendation, the Cabinet put 70 Du Val entities into statutory management.
The Clarkes personally and their family trust are in receivership.
The Clarkes' Remuera rental was raided in August. Photo / Alex Burton
The FMA gained orders seizing assets and made an early morning raid on the couple’s rented home in Victoria Ave, Remuera.
PwC’s report put Du Val’s debts at $237.6 million and expressed serious concern about alleged irregular accounting entries that created assets the receiver said might not be legitimate.
In a summary of estimated external obligations, PwC detailed:
First-ranking secured creditors are owed $170.7m;
Investors owed $41.2m;
Unsecured creditors owed $18m;
Preferential creditors owed $7.5m, including employees and Inland Revenue.
PwC has made an interlocutory application for orders requiring the Clarkes to provide information.
“This application will have a first call on December 3, at which a date will be allocated for hearing.”
For consistency with previous orders relating to the confidentiality of the Clarkes’ personal details and for the avoidance of doubt, Justice Anderson directed any documents filed by PwC in the case not be made available to media.
Only the FMA and the Clarkes should get those, she said.
