Havenleigh Global Services Ltd v Henderson

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2010-409-000559 [2016] NZHC 2969

IN THE MATTER

of the Insolvency Act 2006

AND

IN THE MATTER

of the bankruptcy of DAVID IAN HENDERSON

BETWEEN

HAVENLEIGH GLOBAL SERVICES LIMITED AND FM CUSTODIANS LIMITED

Judgment Creditors (Substituted
Creditors)

AND

DAVID IAN HENDERSON Judgment Debtor

Public

Examination:

Submissions:

3-7, 11-14, 19-20 August, 27 October 2015

10-12 October 2016

Appearances:

J N Foster and C R Vinnell for Official Assignee
D I Henderson (bankrupt) in person

T Cooley (counsel assisting the Court) (attending for submissions)

Livingspace Properties Ltd (in liq) and FM Custodians Ltd
(objecting creditors) (excused from attendance)

Judgment:

9 December 2016

JUDGMENT OF ASSOCIATE JUDGE OSBORNE

under ss 298 – 299 Insolvency Act 2006

HAVENLEIGH GLOBAL SERVICES LIMITED v HENDERSON [2016] NZHC 2969 [9 December 2016]

The public examination of a bankrupt ...............................................................[1] The statutory regime ............................................................................................[4] Sections 298 – 299 Insolvency Act  [4] The Court’s discretion under s 298 of the Act  [7] The Court’s discretion under s 299 of the Act  [12] What is the subject-matter of a public examination?  [15] What is not the subject-matter of the public examination?  [16] The circumstances of Mr Henderson’s adjudication in bankruptcy .............[19] The immediate cause of bankruptcy  [19] The broader background to Mr Henderson’s bankruptcy  [22] Extent of indebtedness at adjudication  [28]

(a)     Form of claims submitted by creditors  [40] (b)     Calculation of interest  [41] (c)     “Overstated claim” – Allied Farmers Investments Ltd

(Allied Farmers)  [42] (d)     “Overstated claim” – Bank of New Zealand (BNZ)  [44] (e)     “Overstated claim” – SCF (now CAM)  [45] (f)      “Overstated claim” – Dominion Finance Group Ltd (Dominion)       [47] (g)     “Overstated claim” – Equitable  [48] (h)     “Overstated claim” – FM Custodians Ltd (FM Custodians)               [49] (i)      “Overstated claim” – Inland Revenue Department (IRD)                   [50] (j)      “Overstated claim” – Strategic Finance Limited (Strategic)               [51] (k)     Unlisted creditors’ claim – Mr Henderson’s sister and brother-in-law [52]

(m)     Cross-claim – Allied Farmers  [53] (n)     Cross-claim – SCF [54] Summary of the extent of Mr Henderson’s indebtedness                [55] Objections to discharge......................................................................................[59] Mr Henderson’s pre-adjudication conduct......................................................[61] First bankruptcy – 1996 to 1999     [61] The direct causes of Mr Henderson’s present bankruptcy ............................[72] Personal guarantees of the debts of companies and an associate  [74] Personal taxation liability – the RFD advances  [94]

Mr Henderson’s business approach as explained to the Ministry of

Economic Development  [116] Corporate structure established between 1999 and 2010  [121] Standard of corporate management  [124] Corporate management approach  [129] Administration  [133] Rulings and judgments of matters previously litigated ................................[152] Behaviours identified in judgments and rulings  [152] Early taxation offences  [153]

Mr Henderson’s agent-liability for GST on the Christchurch City

Council sale – August 2008  [154] (a)     Issue  [154] (b)     The Taxation Review Authority decision  [157] (c)     Related litigation – PVIL v Commissioner of Inland Revenue           [167] (d)     Further related litigation – Commissioner of Inland Revenue

v Forbes  [170] (e)     Mr Henderson’s evidence at public examination  [172] Financial Reporting Act offences – September 2008  [175]

(a)	Issue	[175]
(b)	The…