David Henderson fights another day - bankruptcy averted

Auckland property developer David Henderson. Photo / Steven McNicholl

Princes Wharf developer David Henderson averted bankruptcy this morning to allow him and his creditors time to discuss another proposal that could stop Inland Revenue's application.

High Court Associate Judge Jeremy Doogue adjourned IRD's application to bankrupt Henderson to April 19, to allow Henderson's creditors to vote on a new proposal.

The meeting is expected to be held within the next 10 working days.

IRD lawyer Nick Malarao said the commissioner opposed the adjournment, stating it was in public interest that Henderson be bankrupted.

Malarao said IRD had had this application since 2008, and proceedings had been "on foot" since 2009.

Henderson's lawyer Daniel Grove said his client was confident he would get the votes needed from the creditors meeting.

Henderson owes IRD $3.7 million and the Bank of Western Australia (BankWest) - that also opposes the adjournment and is in support of the bankruptcy application - about $33 million.

Earlier this month, Judge Doogue dismissed Henderson's first proposal to drip-feed $1.5 million, about 4c in the dollar, on a $105 million debt over three years.

The IRD opposed the proposal because it claims the size of the payment, $1.5 million, is too small, there is no assurance of payment, it is in the public interest that Henderson be bankrupted and that Henderson is a risk to the "integrity" of the New Zealand tax system.

The case continues.