Saved from immediate bankruptcy, the High Court approved a part payment scheme put up by Accent on Construction’s Ian Fistonich offering creditors six cents in the dollar over five years and the chance to potentially benefit from a disputed claim against Premier Legal Finance Limited Partnership, an entity associated with Graeme Halse of Auckland law firm Foy & Halse.
Mr Fistonich is insolvent, under threat of bankruptcy on personal guarantees given to creditors of Auckland-based Accent on Construction Ltd. Accent was propelled into receivership in November 2018 by Premier Legal claiming some $2.1 million.
Bankruptcies can be avoided with a part payment scheme of arrangement provided they are approved in each case by a majority of creditors holding between them 75 per cent of claimed indebtedness and court approval is given.
The High Court was told of a fraught creditors meeting in June 2022 where Premier Legal’s vote against the proposed scheme was disallowed. Premier Legal claims to be owed one million dollars by Mr Fistonich personally. If allowed, this vote against would have scuppered the scheme resulting in Mr Fistonich’s likely bankruptcy. The meeting chair said Premier Legal’s debt was disputed; Mr Fistonich has filed legal proceedings against Premier Legal alleging negligence and breach of contract.
Evidence was given this claim against Premier Legal relates to mortgages held over a property owned by Zlato Trust, a trust associated with Mr Fistonich. Premier Legal said this claim is purely speculative, lacks merit and is without substance. Mr Fistonich is simply trying to prevent loss of his family home, it says.
Associate judge Taylor put on hold the bankruptcy application against Mr Fistonich subject to the agreed part payment scheme being honoured and proceeds of any successful claim against Premier Legal also being paid across to his creditors.
re Ian George Fistonich – High Court (8.02.23)
23.020