Developer Blackmore's bankruptcy in judge's hands

Westpac will now abide by a High Court’s decision on former Wellington property developer David Blackmore’s bailout plan.

Owed $330,000 by Mr Blackmore, the bank originally opposed his plan to pay back creditors.

In Wellington High Court Associate Judge David Gendall reserved his decision after a hearing yesterday on whether or not to approve Mr Blackmore’s plan.

Mr Blackmore once owned the iconic James Smith’s corner in Cuba St.

He owes creditors $26.9 million but his plan to fight off bankruptcy would involve paying back only $100,000.

That would mean creditors owed more than $10,000 would be paid a third of cent back in the dollar, while four creditors owed less than $10,000 each will be paid 25 cents in the dollar.

Mr Blackmore’s lawyer Paul Chisnall says petitioning creditor Ullrich Aluminium will abide by the court’s decision, as will Westpac.

Mr Chisnall told the court the $100,000 offer was not insignificant.

“The current status is continuing until the court either approves or rejects the plan. We should have a decision very quickly from the judge,” Mr Chisnall told NBR ONLINE after the hearing.

He says if Associate Judge Gendall accepts the plan, Mr Blackmore will stave off bankruptcy, provided he meets his obligations.

Mr Blackmore’s current employer and the new owner of the James Smith’s corner, Mark Dunajtschik, has underwritten the proposal by offering the $100,000.

Mr Dunajtschik has employed Mr Blackmore to manage the redevelopment of the building, paying him about $40,000 a year.

Associate Judge Gendall’s decision is expected before Christmas.

bcunningham@nbr.co.nz

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9 Comments & Questions

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For the dude who holds the marker for 10K, that's been reduced to the equivalent of 6 lattes.

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No, the NBR got it wrong...
The couple of creditors under $10K are getting 25 cents in the dollar, so the guy with $10K owing is going to get quite a caffeine hit with his $2500.

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As you will see, NBR have now corrected the error in the article to show a 25c in the dollar return.

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Blackmore must only being doing the building cleaning, to be getting $40k per annum. Surely he is getting remunerated better than that?

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Speak not of matters ye know little of, for a little knowledge is a dangerous thing in the hands of the uninformed.

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We hadn't been invoiced from Blackmore [James Smith bldg] for 13 months and we received a backdated invoice on 31 Oct 2012 from Public Image Limited for rental in James Smith bldg from 01/10/2011 to 31/10/2012. Why would they hold off invoicing us?

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In answer to #3 Anonymous. This invoice was to a single car park tenant, who was other than that not a tenant in the building, and so hadn't been added to the new tenancy schedule when PIL took over the property in Oct 2011. A backdated invoice was eventually issued by our external accountants. We're guilty of being a little lax in our invoicing, sorry ...
End of conspiracy theory.

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So knowing a building was in liquidation disarray, you kept using a car park for a year without paying for it. Then you choose to crow about it now? Nice one, it's pretty clear how your mind works...

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Well, "Anonymous 5" that's not entirely fair on "Anonymous 3" as he did question why he hadn't been invoiced quite some months ago. We just hadn't got around to invoicing him, and he paid as soon as he was invoiced. Though I do question his reason for raising this as an "issue" at this point, and on a public forum at that ... I'll ask him why tomorrow :-)

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