Henderson attempts to thwart wind-down process, liquidator says

Tuesday 1st May 2012

The liquidator of Dave Henderson's Property Ventures group has used his first official report to complain of the bankrupted Christchurch property developer's attempts to thwart the wind-down process.

Wellington-based liquidator Robert Walker is treating the Property Ventures group as a single entity, and used his first report to explain "how I am being obstructed in this pursuit" as Henderson and his associates failed to provide him with the relevant documentation.

Walker, whose job was delayed by the timing of last year's February earthquake in Christchurch, expects to receive required documents in the "near future" after they were seized by police who executed a search warrant last year.

He had previously attempted to take possession of the relevant documents, but was unable to secure them, which led to an "acrimonious exchange with Henderson."

Henderson, the high-profile Christchurch property developer, who came to national prominence in the 1990s when he wrote about his long-running dispute with the Inland Revenue Department which was subsequently made into a movie, was put into bankruptcy in November 2010 after his creditors rejected a compromise over debts worth some $70 million.

The relationship between Walker and Henderson hit a low point last year, when the Southland Times reported the property developer accused the liquidator of defamation. Henderson said Walker issued a "publicity seeking" report that referred to Dweller, one of Henderson's companies, as the "fag end of a failed business empire."

Walker used his latest report to talk down suggestions he is "engaged in some kind of personal battle with Henderson and that is my focus in the various liquidations."

"That is very far from the truth. The only reason that Henderson is important is that he holds, or possibly holds - I can no longer be sure - records that are necessary for me to execute my strategy," he said.

As well as achieving the biggest return for unsecured creditors that he can, Walker said he also wants to "show how New Zealand's corporate regime has become profoundly corrupted."

After reading certain emails of Henderson's, Walker said "it is clearly evident that Henderson has continued to operate the businesses despite being a bankrupt."

He cites the proliferation of companies used by Henderson as a common way to "thwart liquidators," by liberally using cross-guarantees to muddle the affairs of various entities.

That makes life difficult for liquidators, as a guarantee entails both assets and creditors as the first accounting entry, Walker said.

Since gaining "unfettered control" of Property Ventures, Walker said he has identified a number of voidable payments to some creditors that "appear to have good prospects of being set aside or having a negotiated settlement of funds."

Still, he said it is "unlikely at this stage that unsecured creditors will receive any recovery of monies owing."

Walker's April 30 report relates to Henderson's Property Ventures, Beechnest Ventures, Sol Management, Ohau Ventures, 72-76 Lichfield, Sydenham Square Investments, Park Ventures, Tuam Ventures, Hotel So Operations, PVL Leasing, Five Mile Holdings and City Lofts.

BusinessDesk.co.nz

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