McKenna cans creditors' meeting in surprise move - bankruptcy looms

Nigel McKenna File photo

Embattled billion-dollar developer Nigel McKenna has suddenly ditched a creditors' compromise scheme.

In a surprise move after more than two years opposing Fletcher Construction over an $800,000 million payment for a $100 million Wellington hotel, the Aucklander has backed away from his repayment plan.

McKenna wanted to return just over $1 million to creditors claiming more than $100 million.

But now, instead of trying to get creditors to agree to that, McKenna has ditched the scheme.

Graeme Christie, the Simpson Grierson partner trying to bankrupt the Lighter Quay developer, said he only got notice of McKenna's sudden move today.

A letter from Melzter Mason Health, the insolvency specialist announced the switch this morning.

"I refer to the meeting of creditors scheduled for 10am (today) to consider the proposal," provisional trustee Jeff Meltzer said in the letter.

"I have been advised by Mr McKenna that he does not wish to proceed with the proposal and there the above meeting has been cancelled," Meltzer wrote.

Christie said that left him questioning the situation.

"Not 100 per cent sure what he intends next," a surprised Christie told the Herald.

The High Court at Auckland is due to resume hearing McKenna's bankruptcy case on Tuesday at 10am.