IRD seeking winding-up order for Harts

By Nick Stride

Friday 17th May 2002

Inland Revenue is seeking a High Court liquidation order for Harts Contributory Mortgages over an alleged $600,000 debt.

Harts is the former Reeves Moses Hudig whose directors, Roger Moses and Gary Stevens, are fighting Companies Office legal action relating to failed contributory mortgage schemes.

Reeves Moses has changed hands several times since the schemes were set up and is now owned by listed financial services company Dorchester Pacific.

Dorchester managing director Brent King said his company disputed the IRD's claim. But if the IRD were successful in having Harts liquidated there would be no effect on Dorchester.

Dorchester would in fact be perfectly happy if the IRD won, Mr King said.

Harts has been a headache for each of its subsequent owners - insurer Sovereign, then ASB Bank, and now Dorchester.

Inland Revenue's action has the potential to affect the interests of the contributors to several Reeves Moses mortgage schemes which are in default. If the IRD won, the burden of pursuing the borrowers would pass from Dorchester to the liquidator.

Harts has succeeded in seizing and selling several apartments in Auckland's Metropolis tower in order to pay back contributors to a scheme which lent $3.5 million to Indonesian investor Susila.

Listed fishing company Seafresh has defaulted on a $1.35 million Harts debt, another of the loans inherited from Reeves Moses.

Former Reeves Moses manager Peter van Nieuwkoop was found guilty earlier this year of breaching contributory mortgage regulations. The Auckland District Court last year cleared Mr Moses and Mr Stevens of multiple breaches of the regulations and the Securities Act. A Companies Office appeal against the decision is still before the High Court.

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