Kim
Dotcom is allowed $170,000 per month out of assets blocked by restraining orders
to meet household living expenses following a High Court review of his
financial position.
Currently facing an extradition hearing over
allegations of copyright infringement in the United States, Kim Dotcom told the
High Court he is running out of ready cash.
His assets worldwide are subject to restraining orders.
The High Court was told his legal bills have
been substantial. To December 2014, he
has spent over ten million dollars on legal fees with two million still
owing. Mr Dotcom estimates ongoing legal
fees will come to between two and four million dollars. He also has substantial living costs to
meet. His current home on a lifestyle
block at Coatesville north of Auckland is leased until February 2016 at an
annual rental of one million dollars (about $80,000 per month). He has the shared care of five children, two
of whom are autistic requiring additional care. Employment costs for eight staff were running
at $35,000 per month.
His assets restrained include ten million
dollars in New Zealand government bonds.
Following a court hearing in 2012, Mr Dotcom was permitted to use these
bonds as security for borrowing $5.4 million to meet ongoing legal and living
expenses.
Back in court, he was asking for the remaining
$4.6 million in government bonds to be released. Justice Courtney ruled he could draw down
$170,000 per month to meet legal fees and living expenses until such time as
the Coatesville lease expired. This
figure was calculated on monthly expenses of rent ($80,000), staff costs
($25,000), household expenses ($15,000) and security ($15,000).
Police, with the support of US film studios,
unsuccessfully opposed the application for funds to be released. They claim Mr Dotcom has access to assets not
caught by the world-wide restraining orders held a a trust called the Trust Me
Trust. The Trust’s major asset is a
shareholding in Mega Ltd, said to be worth more than $30 million. Mr Dotcom said shares in Mega Ltd cannot be
sold prior to a proposed public listing.
Justice Courtney was unwilling to rule on the status of the Trust Me
Trust at this stage. The hearing was an
application for access to funds for living expenses and legal expenses, not a
hearing to decide who is the beneficial owner of Mega Ltd.
Police
v. Dotcom – High Court (23.4.15)
15.035