Creditors appoint committee to look into family trusts
Creditors of insolvent builder Wayne Hartner and his wife, Gaile, will resume consideration of a debt-compromise proposal by the couple of 29 June.
The Hartners proposed separate schemes of arrangement under part XV of the Insolvency Act, which were considered by creditors at a combined meeting today at the Institute of Chartered Accountants in Remuera.
But the proposal — a return of 43c in the dollar, though the actual amount of personal debt hasn’t been pinned down yet — wasn’t put to the vote because of amendments suggested at the meeting.
Karen Mason, a partner of provisional trustee Jeff Meltzer, said after the meeting the creditors had appointed a committee to look behind the four family trusts where the Hartners had placed their assets. “The Hartners have guaranteed total transparency to the creditors,” she said.
Hartner Construction Ltd was the high-profile head contractor on most of the Princes Wharf development when the group collapsed. The company was placed in receivership on 1 February and in liquidation on 22 March. Its prime bank debt was $8.5 million but subcontractors have claimed they’re owed many millions more.