David Ian Henderson – a two-time bankrupt accuses Liquidator of conduct breaches

David (Dave) Ian Henderson, bankrupt high-profile Christchurch property developer, and his business associate Ian Bruce Hyndman, appear to have been behind a Notice in the National Business Review (NBR) and one in the NZ Herald (22/05/13) that ran last year, apparently seeking incriminating information (‘dirt’) on chartered accountant Robert Bruce Walker, liquidator of Property Ventures Ltd (in receivership and liquidation), the parent company of interconnected companies owned or controlled by Henderson. Henderson was behind the failed Five Mile development at State Highway 6, Queenstown, near the Queenstown Events Centre, colloquially known as “Hendo’s Hole.

As sailors know, it is important at sea to avoid peeing to windward. The blow back can be very unpleasant. So can the result of trying to gather ‘dirt’ and throw it at a person and make it stick, when a very strong gale is opposing the thrower.

Dave Henderson who was bankrupted in 1996, was bankrupted for a second time on November 29, 2010. By his own account he has gross personal debts of about $165m and $86m after the sale of secured assets. The debts come mainly from personal guarantee of loans to his companies. Bankruptcies are managed by a Crown authority called the Official Assignee (OA) and normally last for three years. Henderson remains an undischarged bankrupt because the OA filed a notice of objection to Mr Henderson’s discharge, pursuant to s 292 of the Insolvency Act 2006, on 28 November 2013. The OA “strongly suspects that Mr Henderson had entered into, carried on, or taken part in the management or control of businesses during his bankruptcy, contrary to s 149 of the Act. Mr Henderson strongly refutes the Assignee’s suspicions…” (quoted from High Court judgment dated 18 March 2014 – CIV-2010-409-000559 [2014] NZHC 499). [Read more...]

The Truth on Truth Weekender Ltd (Still in Liquidation from 2 July 2013).

The New Zealand Truth was a tabloid newspaper published weekly in New Zealand. It started as the Auckland Truth in 1887. Described as “scandal mongering” and “scurrilous”, it has employed well-known New Zealand authors, including Robin Hyde in 1928.  Redma Yska, once a Truth reporter, has recounted how the paper “introduced a `new journalism’ in 1905, which aimed a core diet of sex, crime, radical politics and random muckraking directly at the masses.” He ends by noting that at the end of 2009, “after 104 remarkable years in New Zealand journalism, Truth quietly sank into liquidation. Truth Weekender, complete with 16-page sex industry pullout, quickly took its place. The wicked old title refuses to die.” [see ref. 1]

As SPCS has pointed out in a series of published articles on its blog, since at least 2007, Truth directors’ seeming obsession with porn sleaze and prostitution advertising ( e.g. a regular 16- page “adult services” pullout in The Truth Weekender ) as a means of earning a quick buck, played an important part in its collapse – leading to the liquidation of two companies and numerous creditors left out of pocket. 

The announcement in mid-June 2013 of the closing of the paper was followed by its publisher – Truth Weekender Ltd [“TWL”] being put into liquidation on 2 July 2013 by special resolution of the shareholders (at the time the tabloid was called the Truth Weekender). The First Report by the Liquidators listed the company at that time as having 56 creditors. The IRD was estimated to be owed about $30,000, trade creditors $110,630 and related party debt $301,280. The company remains in liquidation with little prospect of any of the unsecured creditors receiving anything.

The Truth Weekender had in fact emerged from the earlier tabloid known as NZ Truth, whose publisher  – Truth Publications Ltd (“TPL” incorporated on 17 January 2007), was put into liquidation on 21 October 2009, reportedly owing lenders and creditors over $620,000. [Read more...]

New Zealand Petroleum Exploration Limited: ‘defunct’ company with issues of non-compliance

The Registries Integrity and Enforcement Team (RIET) are part of the Companies Office.  Its  role is to ensure the integrity of the registers that are administered by the Companies Office, by proactively monitoring their use.  RIET primarily acts by seeking compliance or preventing misuse but, where appropriate, it prosecutes offences on behalf of the Registrar of Companies – Mandy McDonald.

The public are encouraged to contact RIET if they become aware of company directors who are failing to comply with the law.

see: http://www.business.govt.nz/companies/about-us/enforcement/contact-registries-integrity-enforcement

To help understand the crucial role of RIET consider the following case study: [Read more...]

Former $6.4 m fraudster bankrupt over BNZ debt

A FORMER fraudster who was jailed for seven years for fraud totalling $6.4 million has been declared bankrupt.

Wellington tax adviser Patrick [Pat] John Renshaw had until yesterday to pay the Bank of New Zealand a compromised debt of nearly $12,000.

BNZ had sought the order last month after Renshaw failed to pay an undisclosed amount. The application was adjourned after BNZ agreed to give him a month to pay the compromised debt of $11, 296 by April 7.

But in the High Court at Wellington yesterday, Renshaw consented bankruptcy. [Read more...]

More on the Registries Integrity and Enforcement Team – Companies Office

Failing to file an annual return is an issue of non-compliance to be dealt with by The Registries Integrity and Enforcement Team (RIET), part of the Companies Office.  Its role is to ensure the integrity of the registers that are administered by the Companies Office, by proactively monitoring their use.  RIET primarily acts by seeking compliance or preventing misuse but, where appropriate, it prosecutes offences on behalf of the Registrar of Companies – Mandy McDonald.

Why would a well-qualified company director(s) fail to file an annual return when for example he/she knows that his/her company owes money to the IRD and/or some other creditor(s)?

Is it because he/she naively hopes that the company debts will slip under the radar of the IRD/creditors and the Registrar will simply strike the company off the register before debts can be settled? It does make one wonder! Responsible directors aware that their company is insolvent are required by law to cease trading and call in a receiver or put the company into voluntary liquidation with shareholder support. This costs money and some company directors – seek to avoid their responsibilities because they have vested financial interests.

Consider the case study of ……. [Read more...]