Five years after his Five Mile development in Queenstown folded, bankrupt developer Dave Henderson and fellow directors are being chased for $100 million.
Henderson was bankrupted in 2010 after Five Mile Holdings and master company Property Ventures went phut for $150m. However, their liquidator is now in court trying to hook into Vero liability insurance allegedly held by Henderson and fellow directors.
The manoeuvres have emerged in two High Court decisions.
“Mr Henderson did not deny he was insured, only that he might not be covered by it,” Judge Christian Whata says.
And if Henderson is covered, the judge continues, he contends it only covers actions “taken in conjunction with the other directors”.
The court bid began late last year, trying to legally establish Henderson and his co-directors had seriously breached the Companies Act and should be banned from boards. If Henderson and his fellow directors are found to be in breach, the court is being asked to order them to cough up $100m compo – presumably via Vero.
Even though Henderson’s broke, it’s necessary to tie him into the case, the liquidator says, to “properly and fairly” pursue the other directors.
Judge Whata obliged, ruling Henderson is a party to proceedings.
Meanwhile, developer Tony Gapes, planning a $125 m Frankton shopping centre on the Five Mile site, has said it could open in Christmas, 2014.