Receivers
of a company associated with bankrupt property developer David Henderson forced
a Vero subsidiary to pay out $6.5 million, part of promised compensation for
insured earthquake damage, by using court winding up procedures.
The High Court was told Vero subsidiary AAI Ltd
was negotiating in 2013 with receivers Grant Thornton over payment for
earthquake damage to property owned by a Christchurch company in receivership:
92 Lichfield Street Ltd. A business
interruption claim of $675,000 had already been settled. There were difficulties in agreeing the
amount due for property damage. Evidence
was given that Vero made a revised settlement offer in June 2013 of $6.5
million plus claim costs to date together with some $203,000 for protection
measures incurred. Several extensions
for acceptance of the offer were granted.
Grant Thornton accepted on the final date before the offer closed
against a background of Vero threatening to make a lesser payment of some $4.6
million and closing the file.
Grant Thornton refused to sign off on a seven
page release form demanded by Vero which required the receivers to get all the
company’s secured creditors agreement to the deal before Vero would pay out. The receivers issued a Companies Act statutory
demand against the Vero subsidiary to force payment. Associate Judge Osborne ordered payment of
$6.5 million within fifteen working days or steps to put AAI Ltd into
liquidation would follow. Judge Osborne
ruled the unequivocal June 2013 offer to pay $6.5 million had been accepted,
payment was due and Vero could not later introduce new terms into the
settlement agreement requiring creditors’ consent.
AAI Ltd
v. 92 Lichfield Street Ltd – High Court (23.06.15)
15.071