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A property developer charged with kidnapping his former business partner has been declared bankrupt.
Richard George Anthony Kroon was adjudged bankrupt on April 24 in the High Court at Auckland. He had made a fortune in property development and co-developed the low-rise, upmarket Chancery boutique shopping precinct in downtown Auckland with Mark Lyon.
Kroon, 53, was bankrupted on the joint petition of Westpac Bank and Auckland Finance.
He and another man were arrested in 2005 and charged with kidnapping Kroon's former business partner, Kim Spencer, on Mr Spencer's property at Pakiri Beach.
The Crown alleges that Kroon's co-accused posed as a prospective buyer of the property to lure Mr Spencer to a shed on the property where several men wearing balaclavas were waiting. Mr Spencer, who says Kroon was present, claims to have been stripped to his underwear, threatened, assaulted and forced to sign documents.
Kroon and his co-accused deny charges of kidnapping, using a firearm, injuring with intent, and demanding with menaces.
Mr Spencer is suing Kroon seeking damages of $500,000. Kroon has filed a counter-suit seeking $3 million which he alleges is due to him from a deal he claimed Mr Spencer did behind his back.
According to documents filed with the New Zealand Companies Office, Kroon is a director and shareholder of numerous private companies and lives in Remuera.
Mr Spencer, a former farmer, turned to property development after being discharged from bankruptcy in September 2000.
The kidnapping trial is scheduled to begin next month.
