David Henderson bankrupted
Creditors owed $130 million reject cents-in-the-dollar repayment proposal by Auckland developer.
Auckland property developer David Henderson has been declared bankrupt by an order made in Auckland's High Court.
The office of Mr Henderson's lawyer, Daniel Grove, said the order was made in judgment by Associate Judge David Abbott issued yesterday at 5pm.
The judgment ends Mr Henderson's long-running battle against the IRD, which is owed $3.6 million.
Proposals by Mr Henderson to repay 4 cents in the dollar to creditors owed $130 million had dragged proceedings over recent months, but last night they were apparently rejected by creditors.
Mr Henderson's first proposal to creditors was rejected by the High Court, forcing him to go back and make another one.
It narrowly squeaked through, getting just above the required 75% support from those who attended the second creditors meeting.
However, Inland Revenue and other creditors BankWest and Downer Construction raised concerns about the vote and wanted the High Court to take another look at the maths of the proposal.
Had the property mogul, best known for his Princess Wharf development, surrendered to bankruptcy when the threat first loomed three years ago, he would be out the other side by now.
He fought hard to get creditor support for his proposal and told NBR in March not trying to repay the debt was cowardly.
"The reality is, I'm not going to just throw my hands in the air like a lot of people and walk away and say this has got too hard," he said.
While that financial battle has drawn to a close, Mr Henderson is expected to stay involved in the redevelopment of Auckland's Victoria Park Market.
Bankruptcy will allow him to take on other development projects as long as they do not involve him borrowing money.
It will put a stop to him leaving the country without the Official Assignee's permission and ban him from incurring debt of $1000 or more, without disclosing he was bankrupt.
NBR staff
Fri, 10 Jun 2011
Fri, 10 Jun 2011
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David Henderson bankrupted
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