Sharechat Logo

Tower questions adviser's role

By Christine Nikiel

Friday 31st January 2003

Text too small?
Tower Trust general manager Glenn Clark said yesterday he was concerned at Money Managers' 50% interest in the new lender to Auckland developer Andrew Krukziener for his Metropolis tower, where more than $25 million is still owed to bondholders.

Mr Krukziener picked up Structured Finance, a 50% subsidiary of Securities Registry (SFL) which is 50% owned by Money Managers founder Doug Somers-Edgar and business partners Russell Tills and Gerald Siddall.

As Mr Krukziener's new lender, SFL was assigned Mr Krukziener's ANZ Bank loans and securities and so preserved the rights of the first mortgagee to be paid back first, stopping Tower Trust from taking enforcement action against the development company, Pacific Properties (Metropolis).

Mr Krukziener can still draw down funds that rank ahead of bondholders.

Mr Clark said bondholders faced the risk of further funds being drawn down to fit out or further develop the remaining property without necessarily improving the property.

"We're concerned SFL is advancing funds to Mr Krukziener ahead of bondholders," he said.

Metropolis trustee Tower told bondholders this week their investments would be slashed in half.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports