Business life hasn’t been plain sailing lately for the family behind Queenstown’s luxury lake launch Pacific Jemm.
Mike Mahoney and son David have both been on the wrong end of recent court judgments in separate civil cases.
The elder Mahoney was ordered to pay the Bank of New Zealand $2.1 million under a personal guarantee to clear a debt shortfall arising from a mortgagee sale.
In the other judgment, Mahoney the younger has to repay $177,000 to liquidators of his company Jouer Money, put into liquidation in late 2009 owing $57,000 in tax.
The Jouer Money liquidators tell creditors they went to the High Court “to set aside an insolvent transaction” and now “have judgment against the director” – David Mahoney – and are progressing collection.
The Mahoneys launched the luxurious Pacific Jemm in Queenstown in February for lake charters at $1500 hourly.
Neither Michael nor David Mahoney are shareholders or directors of Pacific Jemm’s ownership company.
Michael’s wife Tracy is sole director and the sole shareholder, Josephine Mahoney, gives her address as Michael and Tracy’s Paraparaumu home.
Michael Mahoney, a successful developer, borrowed $6.5m from BNZ to develop a Blenheim business park.
The loan was secured by mortgage over units in one of his other developments in Wellington.
The business park encountered difficulties so BNZ initiated mortgagee sales of eight retail units in the Wellington development.
As Associate Judge David Gendall puts it: “These sales reduced the debt owed to BNZ but did not clear it”.
The bank sought summary judgment against Mahoney for the $2.1m shortfall.
In his defence, Michael Mahoney said BNZ dumped the units at “fire sale” prices – fetching a total of $1.5m compared with original valuations of between $2m and $4m.
Mahoney’s lawyer alleged BNZ breached the Property Law Act but Judge Gendall rejected that, ordering Mahoney to pay the $2.1m plus interest.
Mountain Scene tried several times to contact the Mahoneys to ask whether they were appealing the separate judgments against them or whether they’d paid up.
There was no response by deadline.