Krukziener and Hanover settle

The entrance lobby of Krukziener Properties in Auckand's Quay St. Photo / Martin Sykes

Property developer Andrew Krukziener and troubled Hanover Finance have reached a settlement over money owed the company.

In a joint statement today, Hanover and Krukziener said the terms of the confidential settlement required all current proceedings between the parties to be discontinued.

The agreed payments represented a fair and reasonable settlement given the alternative, the statement said.

Since a judgment in April 2007 for a sum of $6.98 million including interest, Hanover had been in negotiation with Krukziener for repayment of the amount, and had brought bankruptcy proceedings against him.

Hanover had been pursuing Krukziener for repayment of a loan originally made in 1988, the statement said.

Krukziener, best known for building Auckland's Metropolis Tower, had made a claim against Hanover relating to that loan and a subsequent joint venture property development.

In December, Hanover Finance investors accepted a five-year rescue plan to save the company from receivership.

Under the plan, the company is aiming to repay nearly 16,400 secured deposit investors their principal of more than $550m within five years.

This week Hanover said the first principal repayment to secured investors under the debt restructure plan was being made on schedule.

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A new independent director and chairman, David Henry, has been approved for appointment to the Hanover board.

Henry was a director of several private companies and former chief financial officer of Fisher & Paykel Industries, before its split into appliances and healthcare arms.

His first tasks would included recruiting a second independent director as foreshadowed in the restructure plan, Hanover said.

As previously signalled, incumbent chairman Greg Muir would resign on Henry's appointment.

- NZPA