Developer avoids bankruptcy - for now

Kent Blechynden

JAMES SMITH: Previous owner David Blackmore outside the former landmark department store in Wellington's Lower Cuba St.

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Former high flying Wellington property developer David Blackmore has won another reprieve from bankruptcy, with creditors being given a chance to vote on a repayment plan.

The former owner of Wellington's James Smith building, who also owned a $3.8 million apartment in central Auckland, is facing bankruptcy having given personal guarantees on loans worth $15.6 million.

In August he told a bankruptcy hearing in the Wellington High Court that he had managed to strike a deal to settle more than $15m of the debt for a nominal sum, but that Ullrich Aluminium was opposing the plan over a debt of $5000.

This morning Blackmore was back in court where his lawyers told Associate Judge John Matthews that a formal proposal to repay creditors was nearing completion and would be filed with the court by Wednesday, ahead of a meeting of creditors.

Associate Judge Matthews allowed the plan to progress ''to let the creditors have their say'' with lawyers for Ullrich indicating they would not oppose the application.

The application to bankrupt Blackmore was adjourned until November 5.

Blackmore, who previously raced luxury sports cars with porn king Steve Crowe, declined to comment when approached outside the court.

Last year Wellington property developer Mark Dunajtschik bought the James Smiths building out of liquidation and hired Blackmore to manage a plan to restart a development plan.

- © Fairfax NZ News