Serepisos enters IRD payment plan

Terry Serepisos. Photo / Getty Images

The IRD and ACC have withdrawn all proceedings against property investor and Wellington Phoenix Football Club owner Terry Serepisos in the Wellington High Court this morning.

The court was told the ACC had been paid in full the more than $400,000 owed, which includes PAYE and KiwiSaver contributions for Phoenix players, and the majority of the $3.5 million owed to the IRD had also been paid, with arrangements to repay the remainder over six months.

Liquidation proceedings against three of Mr Serepisos's companies - Century City Football - who own the Phoenix, Century City Developments and Century City Investment were then withdrawn.

The proceedings against two other companies - City Management and Century City Hunter Street - have been adjourned for six months to allow repayment of debts.

Mr Serepisos had been given until 9.45am today for a cheque for just under $4 million - put in his lawyer's trust fund early yesterday - to clear, to avoid the liquidation of the five companies.

Wellington Phoenix chief executive Nathan Greenham told Newstalk ZB this morning he did not know where the $4 million had come from, although he was confident it would come through.

"What Terry is trying to do is secure his property empire. So there is that differentiation between the two - I'm not party to Terry working with local property investors or whoever it might be, trying to secure $100 million. I just run the football club that is one of his many businesses that he has."

Mr Greenham was confident in the future of the A-League club, although he agreed the current situation was not ideal.

"Currently at the moment and clearly over the last three months he can't afford to run the Phoenix and that is why we are in this current predicament."

He said the club costs between $400,000 and $450,000 a month to run.

Several members of the Wellington Phoenix supporters' club, Yellow Fever, were in court today for the proceedings.

Guy Smith, a spokesman for Yellow Fever, said the supporters were "stoked" with the outcome.

"We're pleased to get it out of the way so the club can start planning for next season," he said.

Mr Smith said he continued to support Mr Serepisos as the club's owner, despite his recent financial struggles.

"These are tough economic times, not just for Terry, and I think everyone understands that.

"We've always wanted Terry in charge of the club. I don't think anyone has come up with a credible alternative.

"He's our guy and we are 100 per cent behind him."

Mr Smith did not believe the recent court battle had impacted the club's player recruitment, saying there was a long off-season for the club to bolster its squad for next season.

In early March, Mr Serepisos was granted a fifth adjournment by Associate Judge David Gendall in the High Court at Wellington as he scrambled to raise money to prevent five of his Century City companies being put into liquidation by the IRD.

The judge made it clear then that things could not "be allowed to simply drift" however yesterday, despite the court being informed of the last minute multi-million-dollar payment from an undisclosed "external" source, Century City lawyer Justin Toebes sought further time.

Asking for the case to be stood down until May 23, he said the defendants would be making payment of future debts falling due by then.

Judge Gendall asked about the source of the trust fund deposit and was told it was a New Zealand trading bank cheque.

He reiterated that he had made in clear in early March that the debts should be fully cleared by yesterday.

"That has not been done."

Judge Gendall said the five Century City companies before the court were "presumed to be insolvent" but were continuing to trade.

He reluctantly consented to a sixth adjournment, but only for 24 hours, stipulating that the debts must be paid in full this morning.

Mr Serepisos had said he was negotiating a US$100 million rescue package from controversial offshore lender Western Gulf Advisory, although this was not mentioned in court yesterday.