Valuer and councillor McNally faces bankruptcy

Steven McNally

Far North district councillor and property valuer Steven McNally has failed to obtain High Court approval for a repayment of 6c in the dollar owed to FM Custodians.

The way is now open for FM Custodians to enforce bankruptcy unless Mr McNally can come up with the money in eight days.

FM Custodians obtained judgment against Mr McNally for $856,353.37 in June 2012. It had sued him for alleged negligence in a property valuation.

He valued a property and the bank subsequently loaned 70% of the value. The homeowners were unable to maintain payments and the funder lost money on the subsequent mortgagee sale.

FM Custodians successfully sued Mr McNally for over-valuing the property and obtained judgment against him for the $856,353.37.

Although he offered to pay $50,000 over five years, FM Custodians refused to accept his part-payment offer.

Associate judge Roger Bell says in his ruling that the debt to FM Custodians swamps the other creditors and it would be owed more than 75% of his total debts “and therefore FM Custodians would be able, by its own vote, to abort any proposal that Mr McNally might put forward".

“It now remains open to FM Custodians Ltd to enforce the bankruptcy.”


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7282 -0.0001 -0.01%
AUD 0.9496 0.0030 0.32%
EUR 0.6481 -0.0008 -0.12%
GBP 0.5610 0.0025 0.45%
HKD 5.6459 0.0007 0.01%
JPY 73.9540 0.4370 0.59%

Commods

Commodity Price Change Time
Gold Index 1313.3 -6.290 2016-09-30T00:
Oil Brent 50.0 0.240 2016-09-30T00:
Oil Nymex 48.1 0.280 2016-09-30T00:
Silver Index 19.2 0.020 2016-09-30T00:

Indices

Symbol Open High Last %
NZX 50 7343.4 7361.1 7343.4 0.24%
NASDAQ 5288.9 5325.9 5269.1 0.81%
DAX 10240.7 10531.3 10405.5 1.01%
DJI 18181.8 18369.6 18143.5 0.91%
FTSE 6919.4 6919.4 6919.4 -0.29%
HKSE 23435.3 23484.4 23739.5 -1.86%
NI225 16474.5 16497.5 16693.7 -1.46%
ASX 5471.3 5471.3 5471.3 -0.65%