Christchurch property developer Harry Shand Crawford was bankrupted on a $942,000 guarantee over top of protestations that he had been a victim of circumstances and that unpaid creditor Blackwater Properties was being vindictive, out to ‘teach him a lesson.’
This debt followed a speculative punt by his company, then known as Crawford Group Ltd, buying four adjoining properties in Christchurch suburb Phillipstown for proposed redevelopment. His company defaulted. The guarantee was called up.
The High Court was told Blackwater had some difficulty in tracking down Mr Crawford to serve notice of its bankruptcy application.
At a subsequent bankruptcy hearing, Associate Judge Lester refused Mr Crawford’s request to be excused bankruptcy on Insolvency Act ‘just and equitable’ grounds.
Mr Crawford is hopelessly insolvent, he said. Mr Crawford claims to own only some furniture and have less than one thousand dollars in his bank account.
Mr Crawford’s commercial behaviour as a property developer warrants bankruptcy and with it further investigation by Insolvency Service, Judge Lester said.
The court was told Mr Crawford took steps to strip assets out of Crawford Group after it defaulted on the Phillipstown purchases, knowing it was going to be sued.
Mr Crawford was commercially irresponsible, Judge Lester said.
Mr Crawford’s allegations that Blackwater’s director was known for ‘aggressive bankruptcy tactics’ that had resulted in ‘business associates nearly being murdered’ were dismissed as factually incorrect.
re Bankruptcy of Harry Shand Crawford – High Court (13.09.24)
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