Blue Chip boss Bryers marked

GRAHAME COX/Fairfax NZ

TOUGH TIMES: Mark Bryers has not paid a $37,000 fine.

Relevant offers

Former Blue Chip boss Mark Bryers faces indefinite bankruptcy unless he fronts up in New Zealand to argue his case.

The founder of the failed property group was bankrupted in October 2009 with personal debts of $230 million.

He has been living in Australia, reportedly carrying on property investment activities similar to the dubious Blue Chip scheme.

Under ordinary circumstances, a bankruptcy lasts for three years, and Bryers would be automatically discharged as a bankrupt on October 1 this year.

But the Hamilton office of the Official Assignee (OA), which is handling his case, has lodged an objection in the High Court against the discharge.

This means that if Bryers ever wants to be discharged from bankruptcy, he must be publicly examined in the New Zealand court by the OA. The court then decides whether or not to grant it, and if so, whether to attach conditions.

"For such an examination to be conducted, a bankrupt person preferably should reside within the New Zealand jurisdiction and be readily available to be summoned to attend before the High Court for the examination to proceed," Hamilton manager Les Currie said.

"Should that not be possible, such as [when] the bankrupt resides overseas, then the objection will continue indefinitely until such a time that the bankrupt is available for examination."

It seems unlikely that Bryers will cross the Tasman and submit to such scrutiny. It's understood he faces arrest if he sets foot on New Zealand soil as he hasn't yet paid the $37,000 fine he received in May 2010 after pleading guilty to book-keeping charges relating to Blue Chip's collapse.

He was also sentenced to 75 hours of community service which it is believed he completed.

He is banned from being a company director until May 2015.

Currie said he was unable to comment specifically on the objection to Bryers' bankruptcy ending. However, general issues the OA needs to consider include:

The bankrupt's conduct and behaviour before and after the bankruptcy adjudication.

The extent of their indebtedness.

Their co-operation with the OA during the bankruptcy, or lack thereof.

Whether the bankrupt has been prosecuted for breaching any legislation.

Whether they could pose a future risk to the community.

When Bryers was bankrupted, the former high flyer claimed to have no assets apart from his clothes, some furniture and a set of golf clubs. But according to a probation report filed in the Auckland District Court about the time of his sentencing, he was earning $10,000 to $12,000 a month (a potential annual income of $144,000) for consulting to Northern Crest, Blue Chip's ASX-listed entity.

He was also living in a luxury downtown Sydney apartment.

At the time, he issued a statement apologising for the demise of Blue Chip, and vowing to set up a scheme through Northern Crest to compensate investors.

That scheme, however, has never eventuated.

Less than a year later, it was revealed he was involved in a new property scheme in Australia with many of the hallmarks of the disastrous Blue Chip operation that collapsed owing 3000 investors at least $80m.

Northern Crest is now in liquidation, with debts estimated at $46m.

- © Fairfax NZ News