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Home / Business

Money's no worry for Krukziener

Herald on Sunday
6 Aug, 2011 05:30 PM4 mins to read

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Andrew Krukziener lives well. Photo / Neville Marriner

Andrew Krukziener lives well. Photo / Neville Marriner

The man behind Metropolis lives well on money beyond the reach of his creditors.

This is Andrew Krukziener. He lives in an $8m house, drives a top-of-the-range Audi, holidays with his family in Europe. And he's a bankrupt.

After Krukziener was declared bankrupt last year owing $6.67 million in unpaid taxes, his wife Gitta Saidi became sole director of his companies and took over some of the household finances. She maintains the family in the manner to which it's accustomed.

The couple do not see a problem with that: they are breaking no rules, as Saidi's city lawyers were quick to advise the Herald on Sunday in a firmly worded letter. And, neither does one of Krukziener's creditors, law firm Hacker and Associates. But the IRD is sick of waiting for its money.

The Official Assignee says Krukziener is not breaking any of the conditions of his bankruptcy.

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The cars are owned by his wife or one of her companies; the home is owned by a trust in the name of philanthropist Evan Hamlet; and Krukziener's European break was signed off by the Government's Insolvency and Trustee Service.

"I can confirm this bankrupt has been given consent to travel to Europe and back to New Zealand," said northern region Official Assignee David Harte. "The trip is being fully funded by his wife's independent income, money which could not be recoverable to estate creditors."

Harte added that asset recovery was under way and Krukziener was making "significant contributions" to his creditors through his employment.

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Companies Office records show that Krukziener has resigned his directorships in 85 companies, but Saidi remains a director of 74 of them.

The couple live on the St Heliers ridge, in a large home described by real estate agent Michael Boulgaris as a "majestic mansion".

It was valued by the council at more than $8m in 2008. An Audi A8 Saloon and a Mercedes-Benz GL500 are parked in the driveway, and the couple's children attend a private school.

This week Krukziener and his family arrived back from a month-long European holiday. They declined to reply to a Herald on Sunday question as to whether they had flown in economy class.

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Krukziener, 45, resigned himself to bankruptcy last December after failing to convince his creditors to accept just 2.7c for every dollar he owed them.

If his proposal had been accepted, the businessman behind Auckland's Metropolis apartment block would have paid just $350,000 of the nearly $50 million he owed.

At the time, Krukziener argued it was the best option for his creditors because bankruptcy would prevent him from continuing business and potentially making the money back.

New Zealand's bankruptcy system gives "people who cannot pay their bills a fresh financial start", according to the Ministry of Economic Development. At the end of the bankruptcy term, a person's financial slate is wiped clean.

A bankrupt is required to sell assets and live modestly, not own a car worth more than $5000 or have more than $1000 in cash.

Krukziener sees no need to explain his lifestyle.

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"I have made it clear to you in emails and through solicitors what my views are, so I'd rather that you didn't press me for a comment."

Robert Hucker, lawyer and partner at Hucker and Associates, said: "I think Mr Krukziener has done many great things for Auckland.

"He was caught in a difficult position but other than that I have no comment to make."

Bankrupts are barred from running or directing companies, unless they have approval from the Official Assignee - permission that has been granted in this case.

A representative of Krukziener Properties Ltd said the company's founder continued to work for them. But his wife was listed as sole director.

The company's website, with Mack the Knife as its background tune, boasts that the company has been responsible for more than 90 projects worth more than $1 billion. It says the company is "considered to be Auckland's finest real estate developer". Krukziener's contact details are the only ones listed on the website.

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The Official Assignee's office said he had sought, and been granted, consent to help manage Krukziener Properties Ltd, a company "owned or controlled by a relative".

"The Official Assignee, as part of granting the consents, regularly meets Mr Krukziener to review the conditions of the consents and assess his ability to make contributions back to his bankruptcy estate.

"Mr Krukziener has not breached any of the conditions of the consents and continues to contribute to his bankruptcy estate and co-operate with the Official Assignee."

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