Affidavit seeks interim liquidator for Shuttleworth development group
Thrice-bankrupt property developer Graeme Raymond’s nemesis, Richard Downey, has filed a 17-page affidavit in the High Court, arguing that Mr Raymond has control of a fresh batch of property companies, including one which has just seen its Waiuku subdivision fail to sell at mortgagee auction.
Mr Downey’s affidavit was in support of an application for an interim liquidator of that company, Wise Lass Residential Ltd, and another eight companies of which Deborah Shuttleworth is director.
But of instead of appointing an interim liquidator on an ex parte basis, Master Faire said the affidavits had to be served on Wise Lass and has put the company in the High Court’s regular Thursday liquidation list this week.
Mr Downey said in his affidavit that various creditors of Wise Lass had asked him to present evidence he had obtained on their behalf, which led them to believe an interim liquidator should be appointed urgently to control Wise Lass’ affairs.
He said this evidence showed Wise Lass was insolvent, Mr Raymond was demonstrating control and management of the company, its assets were in jeopardy and there was a risk that Ms Shuttleworth would place it in voluntary liquidation — reminiscent of the situation two years ago, when Mr Downey fought to overturn the decision by Mr Raymond to place his main development company, First Investments, in voluntary liquidation.
That appointment was overturned and a court-ordered liquidator appointed in his place.
The Waiuku subdivision, on Constable Rd, was taken to mortgagee auction as an abandoned development a fortnight ago by Reeves Moses Hudig Mortgage Nominee Co Ltd, but was passed in with a top bid of $825,000. The mortgage is for $1.2 million.
Wise Lass also has a Te Atatu subdivision, 31 terraced homes on Harbour View Rd, and built 24 commercial/residential units for another Shuttleworth company, Tironui Developments Ltd, on Tironui Station Rd West, Takanini.
Mr Downey said creditors of Wise Lass were owed about $1.5 million.
Mr Raymond, now 37, was bankrupted two years ago. He will face a one-day depositions hearing in the Auckland District Court on 18 August on five charges relating to that bankruptcy, laid by the Ministry of Commerce (now the Ministry of Economic Development).
Raymond has been charged with perjury, making a false statement, contributing to his insolvency by gambling and extravagant living, concealing property and making misleading statements to the Official Assignee.