Failed property developer Terry Serepisos owes taxpayer NZ$41.4m, ASB NZ$5.36m and ANZ NZ$2.98m

Failed property developer Terry Serepisos owes taxpayer NZ$41.4m, ASB NZ$5.36m and ANZ NZ$2.98m

Terry Serepisos

The in-receivership 79 Manners Street Limited, a company owned by failed property developer and Wellington Phoenix football club owner Terry Serepisos, effectively owes the taxpayer NZ$41.4 million, the company's first receiver's report shows.

The NZ$41.4 million stems from money owed to two failed finance companies whose deposits carried a Crown guarantee; NZ$27 million owed to South Canterbury Finance and NZ$14.4 million owed to Equitable Mortgages. Serepisos got a reprieve today as a personal bankruptcy bid was put on hold for a month, see more at the NZ Herald here.

South Canterbury Finance was tipped into receivership last August triggering a NZ$1.6 billion payout to investors under the Crown retail deposit guaranteed scheme. And Equitable Mortgages was placed in receivership last November whilst carrying the extended Crown retail deposit guarantee. Treasury says it has since paid about NZ$140 million to around 2,950 eligible Equitable Mortgages depositors, representing about 78% of depositors and amounts owing.

The money 79 Manners Street owes Equitable Mortgages, through Equitable Property Holdings Ltd, stems from a first mortgage over  the Ivivi Building at 173 Victoria Street Wellington, a first registered mortgage over 14 car parks at 185 Victoria Street, another first mortgage over nine units in the Renaissance Apartment complex at Manners Mall, and a general security agreement over personal property.

South Canterbury Finance had a second registered mortgage over the Ivivi Building, a second mortgage over 495 car parks at 74 Tory Street, a second mortgage over the nine Renaissance apartments, and a general security agreement.

Meanwhile, ASB is owed NZ$5.36 million stemming from a first mortgage over the 495 Tory Street car parks and a general security agreement, and ANZ's owed NZ$2.98 million through a first mortgage over seven apartments and seven car parks at the Lone Star apartment complex on Tory Street, plus a general security agreement.

Receivers John Fisk and Richard Longman of PricewaterhouseCoopers were appointed on May 19 this year after "the un-remedied expiry of a demand issued" by Equitable Mortgages on 79 Manners Street. The NZ$14.4 million owed to Equitable is subject to further interest and penalties, and the NZ$27 million owed to South Canterbury Finance may be subject to further interest and penalties, the receivers say.

Equitable Mortgages' receivers, Grant Graham and Brendon Gibson of KordaMentha, say the company had NZ$188.4 million worth of loans outstanding when it was placed in receivership on November 26 and owed about 6,000 secured debentureholders NZ$192.3 million. Graham and Gibson have said they don't yet know how much of Equitable Mortgages' loan book they'll recoup. 

South Canterbury Finance's receivers, Kerryn Downey and William Black of McGrathNicol, say they collected NZ$238.7 million worth of loan repayments, and received NZ$59 million in inter company loan repayments, in the six months from their appointment to February 28 this year. The taxpayer is likely to lose about NZ$1.2 billion through the Crown retail deposit guarantee scheme, Finance Minister Bill English has said, with the vast bulk stemming from the demise of South Canterbury Finance.



We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.


too big to fail -  IRD will leave him alone

The IRD might, the people will not. Every dog has its day. He looks on that photo as if he's already been dealt to.

A problem artificially ceated by bankers for the benefit of bankers and elites in The Club!!

"The tax payer will bail them out"....

Its obvious  this logic is flawed...

Cue Bono?

Reminds me of a story I heard the other day. A certain developer owes a bank $30mill. Instead of bankruptcy the bank has employed the developer to recover the $30 mill back at a salary of $140k. Maybe a job for Terry at the IRD?...hahaha

Terry even looks like he's had a tough time judging by the photograph of him.

Terry..... You're fired.