Bid for assets rejected

Last updated 05:00 02/06/2012

Relevant offers


BNZ customers hit by five-hour online outage Lending becoming more difficult as NZ banks clamp down Six months on, Bill English demands more information on debt to income ratios Lotto jackpot: What properties could you buy if you win this week's $27 million? Money tip: Struggling at 25? You'll be twice as wealthy at 35 Red Bull heirs: The Thailand family with 11 billionaires Thousands of NZ customers switched power company through winter Same funds, higher fees: KiwiSaver fund supermarket's fee differences revealed Should you be splitting your mortgage? Research shows hope for Maori women's money lives

Two companies owned by property developer David Henderson have lost an application to the High Court over competing claims to the assets of another company associated with him.

The plaintiffs, Gibbston Downs Wines and RFD finance No2, owned by Henderson, had sought a declaration that their security interest over the collateral of Anthem Holdings, which was in receivership, had priority over Perpetual Trust's claim.

Justice Chisholm ruled that given the plaintiffs' security interest did not have priority over Perpetual's, the declarations sought could not be made. The application was dismissed.

Perpetual was entitled to costs against the plaintiff together with disbursements, he ruled.

The background to the case was that Christchurch finance company Propertyfinance Securities (PFS) provided finance to Anthem under a general security agreement in 2005. The securities register for Anthem recorded PFS as the first registered security holder.

The following year Capital+Merchant Finance provided finance to Anthem, on the basis that it held a first ranking security interest.

Ultimately PFS agreed to concede priority to Capital+Merchant. It took seven months for the issue to be resolved and the judgment said the evidence did not disclose what, if anything, was going on behind the scenes in that time. However, that was not significant and it was the agreement that counted.

Capital +Merchant assigned its first ranking security interest to Perpetual in November 2006.

The plaintiffs had contended that the subordination arrangement expired on March 31, 2010 but the judge did not agree.

Ad Feedback


Special offers

Featured Promotions

Sponsored Content