BIL puts squeeze on Krukziener

By Christine Nikiel

Friday 22nd November 2002

Further cracks have appeared in Andrew Krukziener's property development empire after another legal dispute over non-payment surfaced yesterday, this time over his latest apartment project.

Court documents obtained by The National Business Review show BIL (NZ Holdings) has applied for summary judgment against Mr Krukziener's company, Union House, as first defendant and Mr Krukziener as second defendant, seeking payment of more than $3 million.

BIL alleges Union House and Mr Krukziener failed to pay $96,000 overdue interest on Union House in Quay St, Auckland, and has asked the court to order Mr Krukziener and the company to pay the full $3 million including interest owing on the building. It is understood the hearing date is set for next month.

Mr Krukziener said yesterday he was in the process of refinancing the Union House loan. Union House and the surrounding site are Mr Krukziener's latest apartment tower scheme.

Earlier this year he applied for resource consent to turn Union House into a 23-level luxury apartment building but is now marketing a 79-unit, 22-level apartment tower to be built next to Union House.

It is not the first time Mr Krukziener has been forced to front up to legal action over Union House.

Mr Krukziener, whose company Pacific Properties (Metropolis) is still to pay back $25 million to bondholders in Auckland's luxury Metropolis apartment tower, was taken to court in 2000 by BIL when he defaulted on the original $13 million sale settlement. The parties settled out of court.

Mr Krukziener was last month hit with another summary judgment application from Trustees Executors Auckland Custodians, an action understood to be related to a property law notice issued against him by a Metropolis mortgagee.

And Marac Finance took out an application to liquidate a Krukziener company last year an action Mr Krukziener tried to hide by requesting his name be removed from the summary judgment list.

NBR has been told of at least one other case where Mr Krukziener chose private settlement over a legal battle for non-payment.

Mr Krukziener's two apartment plans are still going through the resource consent process. An Auckland City Council senior planner said yesterday Mr Krukziener's 22-level proposal would probably be determined before Christmas.

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