KEY POINTS:
Hanover Finance is likely to restart bankruptcy proceedings against property developer Andrew Krukziener in its attempts to recover a $4 million debt.
The Court of Appeal ruled on Thursday that the former Rich List developer must repay the money, which dates from a deal done in 2002.
Krukziener had appealed an earlier High Court summary judgment decision in Hanover's favour.
Hanover chief executive Bruce Gordon said the matter was basic cost recovery for the financier. "We're considering what options we have, we've not made any firm decisions."
The Herald understands that to pursue bankruptcy proceedings is a logical next step.
The $4 million loan relates to an arrangement Krukziener came to with Hanover, then called Elders Finance, over a debt he could not repay.
Rather than treat it as a bad debt, the finance company entered into a joint venture with Krukziener's interests over other properties.
The agreement stated that if the debtor defaulted on anything the debt was to be repaid, and when the Krukziener camp got behind in rates on one of the properties Hanover called in the loan.
Meanwhile, Krukziener and his wife have put a 5500sq m beachfront property in Glendowie on the market.
David Rainbow of Bayleys confirmed yesterday the property was still on the market but was not being advertised. It's not clear what the site is worth, but Rainbow said it was not worth anywhere near one estimate of $24 million.
