KEY POINTS:
In a surprise twist in the battle to bankrupt former Rich List property developer Andrew Krukziener, five of his creditors have come out in support of him.
Troubled finance company Hanover has been trying for 18 months to bring bankruptcy proceedings against Krukziener over a $4.15 million debt dating back to 2002.
Three court decisions later, the matter was back before the High Court at Auckland yesterday where to Hanover's apparent surprise, five creditors had filed eleventh-hour documents supporting the developer.
It's not yet clear what the basis for their support is, but the Business Herald understands they are likely to want to avoid bankruptcy in order to reach some sort of compromise over what they're owed.
The creditors in support include accountancy firm BDO Spicers, and companies associated with: financier and developer Martyn Reesby; former Auckland Bridge Climb owner Maurice Crosby; and long-time friend Noel Avenell.
Avenell said he had known Krukziener as a friend and business associate for 25 years. Asked why he was supporting him, he said: "I guess because he's a friend whom I trust and admire."
The case looks set to continue generating revenue for the legal profession. No less than seven lawyers were in court yesterday representing the various parties.
Krukziener has opposed the adjudication of bankruptcy, and as an alternative measure has also applied for a stay of proceedings pending the outcome of his appeal of one of the earlier High Court decisions.
And he's also taking action against Hanover, claiming it owes him $86,000. That matter is due to be heard in August 2009.
The $4 million debt relates to an arrangement Krukziener came to with Hanover, then called Elders finance, over a debt he could not repay.
Rather than treat it as a bad debt, the finance firm entered into a joint venture with Krukziener's interests over other properties. The agreement stated that if the debtor defaulted on anything, the debt was to be repaid, and when the Krukziener camp got behind in rates on one of the properties Hanover called in the loan.
Krukziener has argued that Hanover actually owes him $86,000 more than the original loan.
In 2001 Andrew Krukziener defaulted on $21 million worth of bond payments for his Metropolis apartment and hotel tower on Auckland's High St.
Associate Judge Hannah Sargisson adjourned the bankruptcy proceedings until December 18, and told the creditors in support they needed to decide what course of action they were going to take by December 3.
Staying alive
Andrew Krukziener's battle to avoid bankruptcy:
* April 2007 - High Court awards summary judgment for $4.15 million in favour of Hanover.
* June 2008 - Appeal Court dismisses Krukziener's appeal of summary judgment.
* August 2008 - High Court dismisses Krukziener's appeal against bankruptcy proceedings.
* November 2008 - Krukziener opposes bankruptcy adjudication, and seeks stay pending outcome of appeal of August decision.
