Serepisos bankruptcy into extra time, liquidation bids withdrawn

By Paul McBeth

July 18 (BusinessDesk) – Wellington property developer Terry Serepisos got another reprieve as a personal bankruptcy bid was put on hold for another month, while attempts to liquidate two of his companies were also shelved.

FM Custodians Ltd., which is acting for the frozen Canterbury Mortgage Trust, agreed to adjourn its bid to bankrupt Serepisos until Aug. 15, counsel told the High Court in Wellington today. That was to let them try to reach a deal, and was backed by South Canterbury Finance Ltd., which filed notice to join the action as a supporting creditor.

Associate Judge David Gendall granted the adjournment, which also included a bid for a summary judgement against Serepisos from Davidson Armstrong & Campbell Nominee Co.

Judge Gendall said the adjournment would also give the creditors time to assess the value of Serepisos’ assets, which he was unsure as to whether they would be sufficient to meet the outstanding debt.

Peck Consultants Ltd. withdrew its application to liquidate Serepisos’ Century City Ventures Ltd. after the debt was settled, while Monvie Apartments Body Corp. No. 3006020 also withdrew its action against Century City Courtenay Ltd. Neither party pursued costs.

Serepisos didn’t appear and had new legal representation for today’s hearing after Justin Toebes, principal of JT Law and a former partner at Buddle Findlay, withdrew as the property developer’s counsel in May.

Judge Gendall threw out Serepisos’ attempt to quash the bankruptcy bid in May.

FM Custodians is trying to claw back the remaining $5 million owed on some $6.8 million of loans personally guaranteed by Serepisos. The outstanding balance is accruing annual interest of 17.25%.

The lender has already forced mortgagee sales on several properties and expects there may be a shortfall in excess of $2.3 million, the May judgement said.

Serepisos’ Century City Hotel on Wellington’s Tory Street changed hands last week after it was offered as security on a loan from rival developer Mark Dunajtschik, and he has put the property up for sale.

(BusinessDesk)

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