Metropolis man throws in the towel

Andrew Krukziener has faced criticism for living a luxury lifestyle. Photo / Martin Sykes

Andrew Krukziener has voluntarily declared himself bankrupt meaning the Government-appointed Official Assignee will take over his $47 million debt.

Krukziener - developer of Auckland's prominent Metropolis building - was not in court yesterday but told the Business Herald "enough was enough" and that although relieved the fight was over, it was a mix of happiness and sadness.

"Happiness to end the battle, sadness because it's not good to be bankrupted."

Krukziener's lawyer Bruce Stewart, QC, and IRD lawyer Nick Malarao were in court for the hearing yesterday.

Stewart said Krukziener "threw in the towel" after the fight became too much, and added his client had been candid with the court and had co-operated with IRD to reach a resolution. That did not happen and Krukziener bankrupted himself on Wednesday.

Krukziener had initially tried to gain court approval for a creditors' proposal that would have drip fed $320,000 on a collective $47 million debt over a period.

About 70 per cent of his creditors agreed to the proposal but IRD opposed it claiming Krukziener owed $6.2 million.

IRD already has a judgment against him from a previous case for $575,000, included in the $6.2 million.

But last month, Krukziener withdrew the proposal and tried to reach a settlement out of court.

Stewart, QC, said Krukziener finally "threw in the towel" after the ordeal became too much.

Krukziener has been at the helm of more than 90 developments in Auckland worth about $1 billion.

He got into serious financial strife through the multimillion-dollar development of the art deco-style Metropolis building in downtown Auckland.

He told the High Court last month that the landmark building was supposed to set him up for retirement when it sold but instead it failed financially, taking down more than $25 million, and creating lasting effects for the trusts and companies associated with it.

His other high-profile projects have included the HSBC building, DFS Galleria and Customhouse.

Krukziener was advised to enter bankruptcy in 2001 after the failure of Metropolis but dismissed the advice saying he wanted to do right by his creditors.

But during the past 10 years he has faced criticism for continuing to live a luxury lifestyle despite his financial failures.

In 2004 he was disqualified from driving after being caught speeding along Tamaki Drive in a $350,000 Bentley and he was also well known around town in his Lamborghini Diablo.

At the time of the speeding incident friend and fellow property developer Olly Newland told the Herald that Krukziener had a love of expensive cars.

Newland said that during the 1983 royal tour Krukziener, then an 18-year-old student, pulled a prank with friends, joining a royal party entourage in his father's Jaguar.

Newland called Krukziener a loveable guy, "not a nasty boyracer that will upset people on purpose".

Krukziener has had high-profile supporters including former Auckland mayor John Banks who said Krukziener had respect for the city's heritage and had been a part of the growth and beautification of Auckland.

WHAT HE CAN'T DO

For a high-flyer with a love of luxury car brands such as Lamborghini (pictured), the terms of bankruptcy will be severe for Krukziener.

* He cannot own a car worth more than $5000.

* He will be under the Official Assignee's (OA) control for three years.

* Cannot be director of a company.

* Cannot leave NZ without permission.

* Cannot incur credit over $1000.

* Can be trustee of a trust but any money paid out goes to the OA.

* Can keep furniture, personal effects and cash of $1000.

* Cannot own shares in a company, including publicly listed - they are under the OA's control.

* Cannot sell or dispose of shares, the OA may sell them to pay back creditors.

* House may be sold depending on the value, amount owing and whether he owns another property.

ASSETS ON THE BOOKS

* Andrew Krukziener has shares in seven companies including Williams Krukziener, Landmark Property Development, Krukziener Antiques and Great Laundry.

* Krukziener part-owns an office block on 54 Ponsonby Rd worth $3.5 million, as well as a share in 5/29 St Benedicts St worth $600,000.

* Gitta Saidi (Krukziener's wife) is a shareholder of 79 companies including Metropolis Retail, and Andrew Krukziener No 5, No 1 and No 3. (Sources: Companies Office & QV)