McKenna: Bankruptcy unjust

Nigel McKenna. Photo / Supplied

Prominent developer Nigel McKenna is opposing a bankruptcy application, saying it is not just or equitable.

The case went before Associate Justice Anthony Christiansen yesterday on the bankruptcy list at the High Court at Auckland and is being brought by Fletcher Construction which already has previous judicial rulings that McKenna owes it about $1 million for building Wellington's $100 million 17-level Holiday Inn on Featherston St. Fletcher is now claiming just over $700,000.

McKenna developed much of Auckland's Viaduct Basin, the Lighter Quay, worked on the high-rise Auckland Metropolis apartment tower block, Queenstown's Kawarau Falls and developed the Beaumont Quarter apartment precinct opposite Auckland's Victoria Park.

The Irish migrant laid claim to having completed work worth about $1 billion.

He did not appear in court yesterday but was represented by Brian Keene QC against Graeme Christie for Fletcher.

Christie told the judge the matter was long-running but both parties agreed that a defended hearing be set down for half a day on March 21.

The "just or equitable" argument is based partly on McKenna's affidavit of the fallout from the global financial crisis.

The courts can refuse to adjudicate a debtor bankrupt if the applicant creditor has not established the requirements, if the debtor is able to pay or if it is just and equitable that the court does not make an order of adjudication.

The dispute between McKenna and Fletcher has been going on for nearly two years and began last year when demands for payment were made to McKenna's Melview Featherston Street over the final amount for building the 280-room hotel.

Initially, Fletcher wanted $1.7 million and won legal action.

At a district court hearing in Auckland last April, Christie won an order to enforce a Building Disputes Tribunal determination made by adjudicator and barrister John Walton.

Fletcher won security over titles to 18 hotel rooms at the Holiday Inn.

Melview Featherston Street, the company which developed the 17-level hotel, is in receivership, liquidation and has had voluntary administrators appointed.