Archive | John Ede

New liquidators at 3 Ede companies after IRD challenge

Update, 17 July 2004: New liquidators were appointed to 3 of John Ede’s companies – Dimension Residential Ltd, Edmonton Group Ltd and 182 McLeod Ltd – on Friday 9 July after an IRD courtroom challenge to the shareholder appointments.


 


The original appointments were of Grant Reynolds & Gilbert Chapman (Reynolds & Associates Ltd).


 


After a hearing in the Auckland High Court, Associate Judge John Faire appointed Richard Agnew & Vivian Fatupaito (Pricewaterhouse Coopers) to the job. They have given creditors until Saturday 9 October to file claims.


 


IRD challenges appointment of liquidators to 4 Ede companies


Inland Revenue has contested the appointment of Grant Reynolds & Gilbert Chapman (Reynolds & Associates Ltd) as liquidators of 4 of John Ede’s companies – Dimension Residential Ltd, Ede Investments Ltd, Edmonton Group Ltd and 182 McLeod Ltd.


Associate Judge John Faire listed to argument in the Auckland High Court during the regular liquidations list call today and adjourned the hearing to Friday 9 July at 10am to deliver his judgment, which I’m unable to attend. I’ll catch up with it in due course.


Mr Ede’s business has been in difficulty, or worse, for more than 2 years. He tried to put a debt-compromise scheme together under the Insolvency Act, got the votes at a creditors’ meeting in May but had his scheme rejected by AJ Graham Lang in the High Court on 25 June.


Meanwhile, most of his companies have been in receivership or have been placed in liquidation.


Inland Revenue’s application to wind up 182 McLeod Ltd was adjourned from 17 June to 8 July for settlement, to come from a 6-year lease of the company’s building. Inland Revenue wanted the company wound up because the $128,000 debt included Paye & student loan deductions, but agreed to the adjournment after last-minute negotiations, and being told the company no longer had any employees.


When Inland Revenue’s lawyer got to court on 3 June with the intention of having Dimension Residential Ltd & Edmonton Group Ltd wound up, the court was told they’d gone into voluntary liquidation on 1 June, with Mr Reynolds & Mr Chapman appointed liquidators. Inland Revenue’s applications weren’t struck out, but were adjourned to 8 July so the appointments could be confirmed.


Reynolds & Associates issued a public notice on 1 July saying 6 of Mr Ede’s companies were placed in liquidation on 24 June – including 2 where the liquidator appointments are in question, 182 McLeod Ltd & Ede Investments Ltd.


The questionmark over the liquidators’ appointment arises from the required written consents: Mr Chapman wrote a letter on 28 May saying he & Mr Reynolds agreed to handle the liquidations and would sign a consent later.


AJ Faire noted that nothing had been signed by Mr Reynolds, while Inland Revenue’s lawyer, Gareth Neil, asserted that the letter purported to be written on behalf of Reynolds & Associates Ltd, not the individual liquidators-to-be.


Earlier stories:


25 June 2004: Ede fails in 30c/$ bid, bankrupted and numerous U column items over the past 2 years.

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Ede fails in 30c/$ bid, bankrupted

Property developer John Ede had his debt-compromise proposal turned down in the Auckland High Court today and he was adjudicated bankrupt.


Associate Judge Graham Lang rejected the proposal largely on the basis of a $446,000 gst debt, which would take preference over debts to unsecured creditors but wasn’t taken into account when creditors voted 18-12 & 76.8% by value in favour of Mr Ede’s 2nd proposal on 17 May.


The judge also considered Mr Ede, 49, a commercial hazard for his “unbridled optimism,” inability to see commercial risks in a realistic way & his inability to understand the damage caused to others by the losses he had incurred.


His debts at the time of his first proposal, under part XV of the Insolvency Act, amounted to $6.4 million. By the time creditors voted on the 2nd proposal, the number of creditors had doubled and the debt had risen to $7.7 million, against $130,000 of assets.


Mr Ede had offered to pay creditors 30c in the dollar, but it was unclear whether this was to be completed over 5 years or in an indefinite period, his offer to pay at least $50,000 every 6 months was not included in the formal proposal and he might actually pay nothing, with no ability for creditors to take the scheme back to court if that happened.


The judge calculated Mr Ede would have to pay back $2.5 million, which he proposed to pay from earnings in his new role managing projects for Volcanic Investments Ltd. He might manage the minimum payments for the first 2 years but, if he were to fail, it was better that his bankruptcy begin now.


Judge Lang said that as well as causing “disastrous consequences to those who deal with him,” Mr Ede posed a real risk to the wider business community. Creditors had also raised matters worthy of investigating – against available assets of $130,000, he lived in a $2.2 million house at Te Atatu South, apparently containing valuable art works and tastefully furnished, he had contributed to a large launch owned by his 21-year-old son, and had recently disposed of assets without saying what had happened to the income.


The manner in which he incurred his debt to NZ Bloodstock Ltd was also worthy of investigation by the Official Assignee, the judge said.


At the end of his 45-minute judgment, Judge Lang order Mr Ede’s bankruptcy, 5.10pm 25 June, on the first of 3 petitions, by Carter Holt Harvey Ltd (trading as Carter’s).


2 Ede companies which faced Inland Revenue applications to wind them up, Dimension Residential Ltd & Edmonton Group Ltd, went into voluntary liquidation on 1 June. Another, 182 McLeod Ltd, faces an IRD application to wind it up on 8 July.


Already in liquidation are Ambrico Group Ltd, Dimension Furniture Ltd, Dimension Group of Companies Ltd, Dimension Kitchens Ltd, Dimension Residential Ltd, Edmonton Group Ltd and Seleni Group Ltd.


Other Ede companies are 182 McLeod Ltd, 435 Khyber Ltd, Dimension Finance Ltd, Ede Bloodstock Ltd, Ede Investments Ltd, Interlink Commercial Interiors (Auckland) Ltd, Neilson 249 Ltd, St Clair Park Ltd, St Clair Park Management Ltd, St Clair Park Village Ltd and Tuscan Three Ltd.


The company for which Mr Ede is to work, Volcanic Investments Ltd (Stephen Robert Kelly) faced a move to have it wound up last year, but settled in October. Another, Roseneath Properties Ltd, settled after a series of liquidation hearings. Mr Kelly is also a director of Central Strata Management Ltd, Goldsteins Finance Ltd, Grafton Ridge Ltd, Hump O Kelly Ltd, Moos Holdings Ltd, New Oakland Properties Ltd, Southern Hemisphere Land & Property Investments Ltd and Timios Construction Management Ltd, and a former director of Contributory Mortgage Investments, Contributory Mortgage Nominees Ltd and RAM Securities Ltd.


Earlier stories concerning Mr Ede’s companies & insolvency scheme appeared in items in the U column over the past 2 years.

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