Henderson to appeal wine ruling
JOHN EDENS IN QUEENSTOWN
Developer David Henderson yesterday said he would appeal against a High Court decision relating to the receivership of Gibbston wine stocks.
Protracted litigation surrounding companies previously run by Henderson has reached a conclusion – of sorts.
Justice Lester Chisholm in the High Court in Christchurch declined an application by Gibbston Downs Wines and RFD Finance No2 for a dec-laration of priority ranking security interests over collateral of Anthem Holdings, a company incorporated in 1999 to develop a Gibbston vineyard.
Henderson said the case made a mockery of the personal property securities register, the Government agency that records business interests.
"The decision is wrong ... we will appeal it."
He previously filed a claim for prior ranking security and entitlement to the proceeds of wine sales from the Gibbston company, which was placed in receivership in 2008.
Gibbston Downs sole shareholder is Anthem Ltd, a company owned by FTG Trustee Services, in turn owned by Henderson.
FTG also owns RFD.
Justice Chisholm's decision said an earlier court decision found specified wine vintages were the personal property of Anthem and the receivers were entitled to proceeds from the sales.
The wine inventory was worth about $1 million.
Lawyers for Gibbston Downs and RFD claimed the receivers were not conducting the sale of wine at a fair price and their security interest had priority.
Justice Chisholm said the critical issue was the nature of a subordination agreement regarding entitlement to priority security interest. The application for prior ranking security could not be made, he said.
- The Southland Times