Party pill godfather Matt Bowden owes $3.5m

NZ Herald

25 Nov, 2015 04:00 PM2 mins to read

Matt Bowden must pay a former employee more than $85,000. Photo / Brett Phibbs

Legal high godfather Matt Bowden has been found by a judge to owe his company $3.5 million, says its liquidator, and could potentially face bankruptcy action.

Bowden, who was credited with introducing party pills to New Zealand and later moved into importing and manufacturing synthetic cannabis, put the firm Stargate Operations into liquidation in May after being unable to pay bills.

That same month it was revealed Inland Revenue was chasing the firm, which Bowden directed and part-owned, for $850,000 and that trade creditors could be owed just as much.

Liquidator Derek Ah Sam said yesterday that Inland Revenue may now claim about $1.45 million from the company, although the exact amount was yet to be confirmed.

Twenty-two other creditors are claiming almost $1.5 million, according to a report liquidators filed with the Companies Office.

Ah Sam told the Herald the company's shareholders' current account was also overdrawn by just over $3 million and that the liquidators filed a claim against Bowden in the Auckland High Court.

The liquidator said he got judgment against Bowden, who did not defend the proceedings, for $3.5 million this month.

"We have got judgment in relation to our claim against the director. The next stage is trying to collect it, which is the difficult part," Ah Sam said.

Asked if he could bring bankruptcy proceedings against Bowden, the liquidator said: "It's a possible action that we could take. What we would prefer is some form of settlement on it, even if he bankrupts himself, we're not going to see anything."

He added later: "We can go for the $3.5 million but what we're seeking is a commercial solution, bankruptcy is the last option... that would be the last resort."

Ah Sam's report into Stargate Operations said the fixed assets of the company - made up of lab equipment, music equipment and the costume and prop hire branch of the business - were sold for $229,573.