Auckland property developer Andrew Krukziener withdrew his application to gain court approval for a creditors' proposal yesterday and will now try to settle the matter out of court.
Krukziener is facing a bankruptcy application by Inland Revenue that claims it is owed $6.2 million.
A hearing on those proceedings is
scheduled for next month.
Krukziener's lawyer, Bruce Stewart, QC, said his client would try to reach an agreement with all his creditors before the December 16 hearing, with the aim of settling out of court. He said an informal creditors' proposal does not need court approval if all creditors are on board.
About 70 per cent of Krukziener's creditors had agreed to the previous proposal that would pay them out a collective amount of $320,000 from a $47 million debt.
Krukziener will need the IRD to agree to a proposal in order to avert bankruptcy. Stewart said his client has three weeks in which to seal the deal. He said he was not aware of any further funds having been made available for the proposal.
Krukziener is appealing a Taxation Review Authority decision that deemed income he received from his trusts, and has since repaid, between 1991 and 2002 was taxable.
That case was unsuccessfully appealed in the High Court and will now go to the Court of Appeal.
Krukziener strongly denies that the loans should be assessed as income.
The IRD has a judgment against him of $575,000.
