KEY POINTS:
Bridgecorp executive director Rod Petricevic faces bankruptcy proceedings in the High Court in Auckland tomorrow.
It is one of three legal actions he faces, the others being a prosecution for alleged offences under the Securities Act and Companies Act and a civil proceeding under which receivers are trying to recover $2.7 million.
Petricevic lost a bid for a stay in the Court of Appeal on Monday on the case that triggered the bankruptcy proceeding.
The case is a dispute over a payment of $576,100 by Bridgecorp Management Services Ltd (BMSL) to Inland Revenue for tax owed by Petricevic. The receivers gained a summary judgment ordering Petricevic to pay the money plus interest back but Petricevic argued the money was salary and bonuses to which he was entitled.
He was required to deposit the money with the court and when he didn't the bankruptcy proceedings were filed.
Most of the Bridgecorp companies were placed in receivership on July 2 last year when almost $460 million was owned to debenture holders.
On July 5 last year Petricevic transferred his Porsche to a family trust. Bailiffs took the Porsche on June 27 this year and Petricevic has been trying to get it back.
The Court of Appeal said in its judgment on Monday's stay hearing that the transfer of the Porsche within days of receivership was "provocative to say the least".
Petricevic has asserted that he does not have enough assets to pay the money the receiver wants back for the tax bill.
Petricevic has another opportunity to pay the money on Thursday to stave off bankruptcy, though interest accruing daily has increased the amount to $661,333.
The only documentation supporting the payment was a hand-written note on an Inland Revenue Department letter of demand to Petricevic.
The note written by Bridgecorp general manager finance Will Martin said "to be treated as an advance from BMSL".
The Court of Appeal said Petricevic has declined to say what his assets are and has only provided selective extracts from family trust accounts.
"He has not provided any detail as to what he has done with the $4m received between July 1, 2004 and June 30, 2007, including the $576,000 in issue in this case, along with some $1.6 million in advances from the trust since March 2000," the Court of Appeal said.
"As we assume Petricevic does not intend to secure the judgment sum, we simply dismiss the application," the court said.
- NZPA
