435 Devon Ltd, directed by and part-owned by David Bruce Crow of Inglewood and part-owned by his brother Steve Crow (50%) and wife Carolyn Rose Crow (40%), has lost control of the former New Plymouth RSA Strandon property it purchased for $1.9 Million in 2008. (David Crow who owns 10% of 435 Devon Ltd is also director of Buildwise Ltd (In Liq) that was put into liquidation last year owing creditors hundreds of thousands of dollars).
Following two defaults by 435 Devon Ltd on its monthly mortgage interest payments on 6 July and 6 August 2010, PMIT Nominees Ltd, which holds the first mortgage ($375,000) over the property, has put it up for mortgagee auction (on site) at 1.30 pm on 15th September 2010. Advertised as a “Rare Iconic Property” by First National Real Estate, it can be viewed on line at:
The New Plymouth RSA holds the second mortgage of $1.525 million over the property at 435 Devon Street East, Strandon, New Plymouth. The Crow’s company has also defaulted on all monthly mortgage interest payments owed to the NPRSA since 25 February 2010. The first mortgage holder PMIT took over the property shutting the Crows out following the loan default on 6 August 2010. The NPRSA is owed over $50,000 in unpaid interest by 435 Devon Ltd on the $1.525 second mortgage.
At a special general meeting of the NPRSA held on Saturday 7 August 2010, Stephen (Steve) Peter Crow, an associate member of the club, spoke publicly in front of media present on a motion put to members by the executive.
This motion which was later passed by a huge majority, but not supported by the Crow brothers, authorised the NPRSA club to borrow money to buy the first mortgage from PMIT, which had been offered to them. (The executive informed the meeting that Harkness Henry Lawyers of Hamilton, acting for PMIT, in a letter sent to 435 Devon Ltd and copied to NPRSA, informed the Crows that they were in default of their mortgage interest payment and had until 6 August to pay arreas).
Speaking from the floor to the first motion, Steve Crow boldly stated at the beginning of his five minute speech to the membership : “I am speaking on behalf of 435 Devon Ltd… I am entitled to do so…” – and did so despite being a banned director and despite being warned by the meeting chairman John Armstrong that to continue to make this claim was in clear breach of the ban imposed on him under the Companies Act 1993. [Stephen Peter Crow of 14/31 Greenlane East Road, Remuera, Auckland 1050, was banned as a director of companies for four years on 16 April 2010 by the Ministry of Economic Development].
Steve Crow went on to state in front of the NPRSA and media present that almost $30,000 was owed on the clubrooms his company owned, in rates to the New Plymouth City Council and tens of thousands of dollars were owed to a lawyer who has acted for his company [Alan Bevan McKay of Checketts McKay Law of Cromwell]. He also stated dogmatically “435 Devon Ltd will not be paying the mortgages” and then claimed that his company had purposely defaulted (“It was a conscious decision…”) on its mortgage interest payments to PMIT due on 6 August (the day before the meeting) as well as to those owed the NPRSA since February 2010.
The executive informed the meeting that Harkness Henry Lawyers of Hamilton, acting for PMIT, notified 435 Devon Ltd in a letter dated 15 July 2010, in keeping with section 119 of the Property Law Act 2007, that it was in default of its interest payments on its loan of $395,000. 435 Devon Ltd was given until 6 August 2010 to settle the debt and was notified that PMIT had the right in law to put the property on the market if it defaulted. PMIT has now done this and the Crows’ company has lost title to this “Rare Iconic Property”.
Alse see: Media Report
Club votes to buy Crows’ mortgage by Kirsty Johnston 9/08/10