Living
in a large and palatial South Auckland home which featured in NZ House & Garden, Mr Robin Edwards
and Mrs Mary Forbes-Edwards find the noose is tightening as business creditors
lay claim to their family trust-owned home.
The High Court was told the Edwards have
never filed tax returns, claiming to have never earned any taxable income. Mr Edwards was bankrupted by Inland Revenue
in April 2015. His Rolls Royce has been sold;
as has her Mercedes. Their MacWhinney
Drive home, at Drury in South Auckland, was described to the High Court as
sitting in extensive landscaped grounds and being furnished to a high standard.
The Edwards are attempting to dictate the
manner in which Mr Edward’s insolvent property company is wound down so as to
best protect recoveries on a sale of their family home. The home was mortgaged as collateral security
for loans raised by his company, Annik Investments Ltd, to purchase commercial
property. Annik is in liquidation. Annik liquidator, lawyer Scott Greer, alleges
company money was used to renovate and furnish the MacWhinney Road
property. The court was told Annik’s
financial records have been destroyed or lost.
Mr Edwards admits to burning some of the records in his garden
incinerator. He says the rest were
damaged when his garage flooded and then were destroyed.
Annik is suing the Edwards’ family trust
alleging at least $800,000 of Annik’s money went into upgrading the MacWhinney
Road property. A secured creditor
holding a mortgage over MacWhinney Road is suing for vacant possession so it
can sell. A joint venture partner in an Edwards’
property deal is suing for $1.1 million alleging the Edwards misrespresented
their net worth.
Justice Wylie ordered the Edwards shift
out of their home ready for a forced sale.
As a concession, the creditor gave them two months to try and find a
buyer. The property was previously
passed in at auction. His Honour ordered
the proceeds of sale be frozen pending a decision regarding claims by Annik’s
liquidator for a share in the proceeds.
Annik
Investments v. Edwards – High Court (16.03.16)
16.045