Legal action against Wellington entrepreneur Terry Serepisos claiming he owes $2.4 million on a guarantee was deferred by the High Court. Suggestion this legal action was pursued as leverage to force Serepisos into settling an unrelated legal dispute meant Associate judge Skelton refused to order payment under the High Court fast-track summary judgment procedure.
The High Court was told the guarantee arose in 2018 from a $115,000 loan contract between Mr Serepisos’ mother and financier Gumdigger Ltd. Auckland-based George Hunter controls Gumdigger. Mr Serepisos signed the loan contract on behalf of his mother under power of attorney, signing again in his personal capacity as guarantor. She was bankrupted in 2020.
Terms of the guaranteed loan has daily interest capitalised into the loan at 0.165 per cent per day. Five years on, the outstanding balance exceeds $2.4 million.
For reasons not explained in court, Gumdigger took no steps to enforce its guarantee following bankruptcy of Mr Serepisos’ mother.
Mr Serepisos alleges legal action to now enforce the guarantee only materialised after he filed legal action in a dispute against a company called Black Robin Equity Ltd, another Auckland-based financier. Black Robin is controlled by Dave Wigmore.
Mr Serepisos claims Black Robin bought out the debt owed Gumdigger and is now using the assigned debt to sue him on its associated guarantee for the ‘improper motive’ of putting commercial pressure on him in the Black Robin dispute.
Mr Sereposis also claims Gumdigger held shared rights with another lender as a secured creditor over three Wellington properties owned by his mother, properties since sold. There has been no explanation as to what Gumdigger may have received from these sales in reduction of the assigned debt, Mr Serepisos said.
Judge Skelton refused summary judgment on the guarantee. A full court hearing is required to establish the facts and define the disputed issues, he ruled.
Gumdigger Ltd v. Serepisos – High Court (17.06.24)
24.152