Auckland property developer Cheng Tih Lee, otherwise known as Brandon Lee, saw the High Court whip away control of his company Spot X Ltd following allegations he was actively hiding from insolvency practitioners seeking to track down $300,000. At the same time Mr Lee was allegedly trying to spirit assets away from their grasp.
Mr Lee is in the sights of liquidators seeking to track down assets of a company called Delorme SE24 Ltd. Delorme is insolvent. They identified $300,000 cash from Delorme had found its way to another company called Spot X Ltd. Mr Lee controls both companies.
Delorme liquidators had trouble contacting Mr Lee. He no longer lived at the address noted on Companies Office records. He was subsequently served by text and email with formal notice to attend the liquidators’ office and to answer questions about Delorme’s assets. He didn’t show up.
Liquidators then took steps to force Spot X Ltd into liquidation in order to recover what was presumed to be a $300,000 intercompany loan. Through intermediaries, Mr Lee let the liquidators know that Spot X’s listed registered address was no longer being monitored, offering no alternative as to where legal documents could be drawn to his attention.
To their consternation, Delorme liquidators then discovered Mr Lee was rearranging shareholdings in his various related companies which would have the effect of shifting assets away from Spot X. They asked the High Court immediately put Spot X into interim liquidation; a formal liquidation application would take some time.
Associate judge Sussock appointed Insolvency Service as interim liquidators with power to take control of Spot X assets. Company assets are in jeopardy, she ruled.
Delorme SE24 Ltd v. Spot X Ltd – High Court (15.06.23)
23.091