Krukziener on spree but bondholders high and dry

Coran Lill

Friday 26th March 2004

Fast and furious Andrew Krukziener has gone on a selling spree, offloading about $30 million of property in what is believed to be a move to pay back loans and stave off circling creditors.

The property developer, who in May 2001 defaulted on a $21 million payment to bondholders in the downtown Auckland Metropolis building, continues to hide behind a complex web of nominee companies. According to the Companies Office, he is the director of 79 companies, two of which are in receivership and eight are in liquidation.

Last year, Krukziener put four of those companies, including a company called Duvall, into voluntary liquidation after Inland Revenue applied to have the companies wound up.

He is believed to have sold half a dozen properties in recent months.

Krukziener would not confirm whether sales had been made and said, if there had been sales, he would not comment on where proceeds had gone because "it was nobody's business."

Krukziener is understood to have debts with AMP, ANZ, Bridgecorp and Hanover Group, the last of which was described by a source as "an informal debt compromise arrangement."

Two of Krukziener's companies, Auckland No 7 and Oppurtunity, owe creditors $1.4 million. This is on top of the infamous $21 million he failed to pay to long-suffering Mom and Pop bondholders in the Metropolis project in May 2001, a debt close to $25 million when interest is added. He also owes money to the IRD, believed to be at least $2 million.

Interestingly, sources said Krukziener had also been or was in the process of buying several properties, sparking interest in his movements from creditors.

Commercial broker Robert Platt, of Bayleys Real Estate, said he had "been involved in some deals for Krukziener recently," but he did not want to say what or where those were.

One of the deals is understood to be worth $4-5 million and involves a property in Nugent St, near the top of Symonds St, Auckland.

One of Krukziener's companies, 8 Nugent St Ltd, officially owns the multi-story building, which it bought from property developer James Kirkpatrick, according to records. But it is understood the property has been sold on to Mark Ching, director of vehicle transport company Armacup.

Ching confirmed he had bought a property in Nugent St late last year but was uncertain whether he could give any more information because he "thought" the sale was subject to a confidentiality agreement.

Asked if he had sold a property in Nugent St, Krukziener said he was in a meeting and would call back. At press time no phone call had been received.

Despite Krukziener's string of debts he continues to live well. He's still banned from driving his Bentley after losing his licence the day before his February wedding to the sister of Kirkpatrick's wife, which featured fantastical props like two lion cubs, and white swans in a swimming pool.

Sources also said Krukziener's Albert St office has a large-scale model of a $20 million house he plans to build.

A creditors' meeting for one of Krukziener's companies, Duvall (formerly Courthouse No 1)  the company which fronted Metropolis' building and development contracts and was put into liquidation in 2003, was held a fortnight ago to discuss whether Krukziener-appointed liquidator Stuart Robertson should stay on. The issue has been adjourned to next Thursday.

PricewaterhouseCoopers director Vivian Fatupaito said both she and PWC partner Richard Agnew had been suggested by a creditor as appropriate replacements for Robertson but she declined to comment on whether that creditor was the IRD.

The IRD's initial application to wind up Duvall named the pair as appropriate liquidators.

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