By RILEY KENNEDY
Queenstown’s mayor and another director of the failed Stonewood Homes Ltd settled legal action with a $3.5 million payment to its liquidators.
Stonewood and its associated companies were placed into liquidation in the High Court at
Christchurch in February, 2016, with millions owing to creditors.
Liquidators Rhys Cain and Rees Logan took Jim Boult and Stonewood founder and director Brent Mettrick to court, alleging they continued trading while the companies were insolvent.
Part of the legal proceedings were also to recover alleged ‘‘excessive remuneration’’ paid
Cain confirmed in August the proceeding was settled, but wouldn’t provide details.
Stonewood’s latest six-monthly liquidator’s report says the proceedings were settled and withdrawn following the $3.5m payment, with ‘‘no admission of liability’’ by the defendants.
The respective contribution of each paying party to the settlement amount was confidential.
Liquidators received just over $25m in claims from Stonewood Homes Ltd, and $13.6m for
its associated company, Stonewood Homes New Zealand Ltd.
Boult declined to comment, citing a confidentiality agreement.