High Court warnings to Leslie Fugle that control of Wellington property company Vey Group Ltd would be taken from him if he did not co-operate in buying out minority shareholders have come to pass; the company goes into liquidation if no agreement is reached in the next two months.
Vey Group Ltd owns an investment property in Webb Street, Wellington. A family trust called Orana Trust representing Turvey family interests holds a minority 49 per cent interest. Interests associated with Palmerston North director Leslie Fugle purchased a majority shareholding in a forced sale following Family Court litigation between Turvey family members. This left Orana in a minority, stranded with no voting leverage. Litigation between Orana and Mr Fugle has been to the High Court, Court of Appeal and back to the High Court. Orana alleges Mr Fugle is using Vey Group assets for his own benefit and is being obstructive. The primary dispute is over a loan to Vey Group claimed by Orana but disputed by Mr Fugle. This money was loaned by Turvey family interests to fund purchase of Webb Street. Mr Fugle claims the loan is a Turvey family tax deal; nothing to do with Vey Group.
In July 2019, the High Court ordered an independent valuation of Orana’s minority interest with Orana then to be bought out. One year later, a High Court special appointment of receivers was needed to force access to company records. Receivers assessed Orana’s loan to Vey Group at $1.04 million. Mr Fugle disputes this amount is due.
Justice Mallon said Mr Fugle has two months to reconsider his position. Failing that, a court ordered liquidation kicks in. The court-appointed receivers have been appointed liquidators. The $1.04 million Orana debt is likely to be accepted as a claim in the liquidation. Webb Street has a current market value in excess of two million dollars.
Orana Trust v. Vey Group Ltd – High Court (2.10.20)
20.161