Published 23 November 2010
Property developer Andrew Krukziener has 3 weeks to put together an informal insolvency scheme with his creditors – including Inland Revenue – after withdrawing his application for a formal scheme yesterday, at the start of the third day’s court hearing on it.
Associate Judge Rob Osborne adjourned Inland Revenue’s application to bankrupt him until Thursday 16 December.
The bankruptcy application was over an undisputed debt of $576,800, arising from a “loans-is-income” case from 1991-2002 – Inland Revenue regarded any money Mr Krukziener borrowed from his trust as income in his name. On top of that, Inland Revenue had applied penalties & interest from 1991 and then every year. Inland Revenue claimed Mr Krukziener owed $6.7 million.
Counsel for Mr Krukziener, Bruce Stewart QC, said in opening the case in the Auckland High Court last week total creditors had been reduced from $76 million to $47 million since a majority by number approved his scheme in June. 10 creditors owed $22 million supported his formal proposal, whicvh would have seen him pay his creditors $250,000 in 2½ years, followed by 2 payments of $50,000 over the next year.
U: The names behind the action, the week to 21 November 2010, part 4, Krukziener argues for debt compromise
22 September 2010: Krukziener loses tax appeal, says it won’t affect insolvency scheme
U: The names behind the action, the week to 13 June 2010, part 1, Krukziener insolvency proposal application adjourned, tax appeal also in court
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Attribution: Counsel, story written by Bob Dey for the Bob Dey Property Report.