Wires crossed in Serepisos scrap

Property tycoon Terry Serepisos has been embroiled in accusations of "tampering" with telecommunications equipment that left hundreds of customers without phone and internet services.

It followed a dispute over a rental payment. The legal scrap took place last month over New Zealand Wireless's lease of rooftop space at a building in Victoria St, Wellington, owned by Mr Serepisos, where $2000 annual rental had not been paid since 2006.

Mr Serepisos asked NZW for a one-off payment of $33,750 and to provide "complementary internet and phone services" for his Grand Mercure Wellington Hotel and Century City Apartments in Tory St as compensation, according to legal documents.

If his terms were not agreed to within 24 hours, he threatened to remove what he considered all "unauthorised equipment" from the rooftop, except that needed to service his hotel and apartments.

Mr Serepisos said yesterday that there had been a "misunderstanding" and the two companies were now happy to work together.

NZW told its customers that its equipment had been "tampered with", causing a major disruption to services, starting on June 21. Full service was not restored until three days later.

"Over the previous week we had been in discussions with Terry over disputed rental for the building, where he was attempting to make unreasonable demands outside the terms of our lease," a letter to customers said.

The company went to the High Court to allow its staff access to the site. "Once access had been gained we identified a number of links had been tampered with and equipment subsequently damaged."

The outage was the worst to affect the company and it was "clearly obligated to pursue Century City Ltd for damages", the letter said.

Mr Serepisos said last month in correspondence to NZW that only one antenna had been authorised at his Victoria St building, not the nine that were now there. NZW managing director Christopher Aspros said in an affidavit filed in the High Court that there was approval for seven antennas to be on the roof. Two others used for testing did not have approval.

An offer to remove them was knocked back by Mr Serepisos. He said it could not be done because he had changed locks on access doors to the roof, it is claimed in the affidavit. The situation came to a head on June 21 when at least two antennas were disabled, affecting phone and wireless internet services to 800 people for up to three days.

It is claimed in the affidavit that Mr Serepisos said "he had disconnected the antennas".

It is also alleged that Mr Serepisos accused Mr Aspros of stalling for time to set up an alternative site and he made comments to the effect of "what do you expect me to do?" and "you are just taking the piss".

NZW successfully sought a High Court interim injunction on June 22, which ordered Century City to give NZW access to the building and not to interfere further with its equipment.

Mr Serepisos said yesterday that the companies had reached an "in-principle agreement" to resolve the matter. Century City had been trying to overturn the interim injunction granting NZW access to the building when the agreement was reached.

A "misunderstanding" had occurred between both parties and negotiations would continue to bring the matter to an "amicable solution". Legal action would not be necessary, he said.

Mr Aspros said both parties were pleased that the matter would be quickly resolved.

The story so far

August 2003: NZ Wireless signs a lease with Century City to use rooftop space at 173-175 Victoria St for telecommunications equipment. The rental is to be $2000 a year, until 2008. NZW claims invoices were not sent but it made payments until 2006. NZW claims a lease clause meant it could remain on the same conditions if a new lease was not signed or be given three months' written notice to leave.

About June 10: Terry Serepisos and NZW managing director Christopher Aspros meet. Mr Aspros claims in an affidavit that, of its nine rooftop antennas, six had been placed with the permission of Century City. Another was installed to service the Serepisos-owned Grand Mercure Hotel and Century City Apartments. An offer to remove two unauthorised antennas is refused by Mr Serepisos, who says he has changed the locks on access doors.

June 10: Mr Serepisos seeks a one-off payment of $33,750 within 24 hours, plus free internet and phone services to be provided to his Tory St hotel and apartments. He threatens to disconnect all "unauthorised equipment" if there is a "failure to agree to the terms".

June 17: Mr Serepisos proposes NZW pays $17,600 for rent and power, and provides two months' free internet for his hotel.

June 21: At least two antennas are disabled, affecting phone and wireless internet services to about 800 people.

June 22: Mr Serepisos tells Mr Aspros that, because NZW had not paid any rent or power for five years, he has disconnected the antennas.

June 22, 7.22pm: A High Court judge issues an interim injunction instructing Century City to allow NZW access and not to interfere further with its equipment. That day Mr Aspros sends an apology letter to customers saying "we are clearly obligated to pursue Century City and are determining a level of compensation for our customers".

- © Fairfax NZ News