Interests associated with property developer Tim Edney are pushing for bankruptcy of fellow property developer Neville Mahon on a $831,000 debt, just one of multiple disputes between the two currently working through the courts. Bankruptcy will stop dead Mr Mahon’s ability to actively defend claims; Insolvency Service takes over.
Any trace of an amicable working relationship between the two foundered long ago. There has been a sequence of court cases disputing their joint involvement in property transactions in Queenstown, south Auckland and now the Station Hotel on Beach Road in Auckland’s central business district.
In 2020, the High Court ordered Mr Mahon pay Mr Edney’s Waimauri Ltd some $395,000 plus accrued interest, then calculated at $437,000. This was well below the multi-million dollar sum claimed as arrears on the Mahon-guaranteed loan from Waimauri, a loan used for redevelopment of Station Hotel. While ruling Waimauri was entitled to the sum ordered, Justice Muir was moved to comment on aspects of Mr Edney’s conduct as being ‘rapacious;’ such as requiring Station Hotel upgrades be financed with Waimauri money and then subsequently benefitting on sale from the increased capital value of the project.
Mr Mahon asked for time to pay the court-ordered amount. Mr Edney demanded full financial disclosure before agreeing to any concession. Mr Mahon refused; Mr Edney would use this information against him in other ongoing litigation between the two, he said. Mr Edney issued a bankruptcy notice; a legal precursor forcing Mr Mahon into bankruptcy if payment was not made. Mr Mahon applied to have bankruptcy proceedings halted. Associate judge Sussock ordered a halt, continuing until such time as Mr Mahon’s appeal against the court-ordered $831.000 debt is decided.
Mr Edney alleges Mr Mahon is stalling. An appeal was filed late and Mr Mahon has delayed getting a hearing date fixed, he said.
Waimuri Ltd v. Mahon – High Court (25.06.21)
21.108