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SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

Dave Henderson liquidator knocked back on $80,000 debt

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The Court of Appeal has backed a ruling allowing Christchurch property developer David Henderson to bat off a statutory demand for $80,000.

The Henderson win is another chapter in the long and bitter saga between Wellington liquidator Robert Walker, who is the liquidator of Henderson’s failed property empire, and Henderson, who is a bankrupt.

The Court of Appeal, in a judgement on June 17, upheld a decision by associate Judge Rob Osborne setting aside a statutory demand on RFD Finance Ltd (RFD), lodged by Walker as liquidator of Sol Management Ltd (Sol).

Walker served the the demand on RFD, part of another group of Henderson companies, on August 7, 2013, requiring repayment of $80,000.

The money was part of $150,000 paid to Henderson’s company, Tomanovich Holdings Ltd (THL), by the Queenstown Lakes District Council. Henderson directed about $135,000 of the money to Sol’s Westpac account. About $26,000 was applied to Sol’s overdraft and, on the same day, he ordered the transfer of $80,000 to the trust account of Cousins & Associates, for the credit of RFD.

The $80,000 was then transferred between other Henderson companies. No records were kept of the terms on which THL diverted part of its $150,000 payment to Sol and of the nature of the transaction between Sol and RFD apart from a trust account note.

In the High Court, Judge Osborne said the documentation [provided by Henderson] was completely inadequate. [Read more…]

Dave Henderson fails to stop liquidation bid

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The High Court has dismissed a bid by one of David Henderson’s companies now directed by his wife to stop liquidation proceedings.

Wellington accountant Robert Walker, the liquidator of several companies in the Henderson group, has started court action to liquidate Castlereagh Properties Ltd, of which Henderson was a shareholder until June 27, 2010.

The shares are now held by FTG Trustee Services Ltd, a company directed by Henderson’s wife Kristina Louise Buxton, but with the shareholding in Henderson’s name.

Henderson was bankrupted on November 29, 2010 and remains a bankrupt. Walker has also issued bankruptcy proceedings against Buxton.

She is the sole director of Castlereagh, which applied to the High Court at Christchurch last month to have the liquidation action stayed. Associate Judge Rob Osborne rejected the bid in a judgement this month. [Read more…]

David Ian Henderson: Probe into collapse of Hendo’s failed Property Ventures Ltd

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Property Ventures Ltd (PVL) was a development and investment company founded by Dolf de Roos and led by Christchurch-based property developer Dave Henderson. David Ian Henderson was adjudicated as a bankrupt in the Christchurch High Court on 29 November 2010 and remains a bankrupt under that order. He was to have appeared before the Christchurch High Court on 9 June 2014 for public examination of his activities whilst a bankrupt, but that “has been put on hold after the Christchurch businessman refused to hand over documents he was asked to surrender. A judge ruled that emails between Henderson and several of his business associates had to be provided to investigators so they could be considered at a three-day High Court hearing, scheduled to begin on June 9.” (The Press 29/05/14).

PVL was placed into receivership on 5 March 2010 owing $69 million and then placed into liquidation on 27 July 2010. One of its many subsidiaries – Park Trustee Company Ltd – was put into liquidation on 19 June 2012.

In May 2005 PVL attempted to raise $52.5 million from the New Zealand public with an offer of $1.75 convertible notes, without much success. Those few who did subscribe were subject to a trust arrangement with Covenant Trustee Company Limited. PVL then went further afield seeking to woo overseas investors to this offer, this time listing a PVL subsidiary – Park Trustee Company – as trustee on its investment statements.

A subsequent probe into the activities of PVL commenced by the Securities Commission in 2007 following complaints from overseas investors over non-payment of interest, raised alarms over the role of the related party trustee – Park Trustee Company  – in its apparent failure to protect overseas investors. The Commission expressed concern that the PVL investment statements may have been misleading – a potential criminal breach of the Securities Act, which does cover some aspects of overseas issues.

The trust deed that bound the trustee (Covenant Trustee Company) to protect NZ investors, allowed for PVL to withhold interest payments to investors if doing so would make it (PVL) insolvent or breach other debt covenants, but non-payment would not count as a default. With such dubious terms, it is not surprising that few New Zealanders chose to invest in PVL.

Park Trustee Company Ltd [PTCL) was incorporated on 20 October 2004 under the name “Property Ventures Trustee Company Ltd” (PVTCL) with its sole shareholder being Property Ventures Ltd [PVL]). Dave Henderson, who was a director of PVL at this time (he was appointed on 6/11/02), was appointed sole founding director of PVTCL on 20 October 2004 and he was soon replaced by sole director John Edward Butler just 13 days later on 2 November 2004. On the next day, 3 November 2004, Austin John Forbes was appointed as a second director of PVTCL (record filed 4/11/04). [Read more…]

Dave Henderson hearing delayed as emails withheld

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A public examination of Dave Henderson’s [David Ian Henderson] bankruptcy has been put on hold after the Christchurch businessman refused to hand over documents he was asked to surrender.

A judge ruled that emails between Henderson and several of his business associates had to be provided to investigators so they could be considered at a three-day High Court hearing, scheduled to begin on June 9.

However, the controversial property developer objected to the decision by Associate Judge Rob Osborne and lodged an appeal with the Court of Appeal in April.

Henderson said he believed the pursuit of the emails was “oppressive and abusive” and “simply a fishing expedition” by investigators.

The Official Assignee already had the information needed to complete her report, he said.

For full report by Blair Ensor, published 29/05/14 see:

http://www.stuff.co.nz/the-press/10095291/Henderson-hearing-delayed-as-emails-withheld [Read more…]

David Ian Henderson – his latest bankruptcy and FTG Trustee Services Ltd

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Dave Henderson [David Ian Henderson], twice-bankrupt Christchurch property developer, remains a bankrupt and yet he is listed on the Companies Office website as owning 100 shares (100%) in FTG Trustee Services Ltd, a company of which he is sole director, and which currently owns 16 companies (see list below).
Is it lawful for Mr Henderson to continue to own these shares while a bankrupt? Should not the Official Assignee (OA) secure them on behalf of creditors and sell them, given that Henderson had gross personal debts of about $165m and $86m after the sale of secured assets, at the time the High Court in Christchurch imposed bankruptcy for the second time on him on 29 November 2010? (He was bankrupted in 1996 for three years). Are these shares not vested in the OA from the commencement of Henderson’s bankruptcy? If not why not?
These questions can best be answered by first examining The Insolvency Act 2006  –

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