Application to Bankrupt Greg Olliver: Tuesday 10 December 2024

Chris Gedye, Keep Whangaparāoa's Green Spaces (KWGS) legal advisor writes :-

“An application to bankrupt Greg Olliver was heard in the High Court Tuesday morning 10 December 2024 with the BNZ as the applicant. Mr Olliver’s lawyer, Rob Tucker, supported by Tim Fitzgerald, the lawyer for the first mortgagee (1543 Capital of the USA) requested an adjournment on the basis that Mr Olliver was preparing a Creditor Proposal. The BNZ and the third mortgagee (Gold Band Finance) objected to any adjournment.

Judge Cogswell agreed to an adjournment until 24 February 2025 on the basis that a Creditor Proposal was presented by 31 January 2025.

We believe there is little chance of Mr Olliver being able to arrange the funds that would be required to payout all creditors as we understand that 1543 are now owed in the vicinity of $53 million according to 1543’s lawyer and the BNZ around $2 million. There is also likely to be money owing to the second mortgagee (Alpha First Finance) whom we believe has been partly repaid following the sale of Mr Olliver’s home in St Heliers, but we understand the sale price was probably insufficient to cover the whole debt, so a balance is still owing. 

The various mortgagees have the golf course land as their principal security so any action for recovery of their loans would be against Long River Investments (the owner of the golf course).

However, if the loans are in default, which we believe they are, and if there is a personal guarantee from Mr Olliver, then the mortgagees will have the right to exercise that personal guarantee and have a claim against Mr Olliver personally. This is likely what has happened.

The BNZ do not have a mortgage over the golf course land but presumably are exercising a personal guarantee over Mr Olliver’s defaulting on an unrelated mortgage.

So, what happens now?

It is possible that Mr Olliver may come up with a creditor proposal that is acceptable to all creditors. We think this is unlikely. If he cannot satisfy all creditors with an acceptable proposal, then the bankruptcy will likely proceed on 24 February.

That would usually mean that his assets would fall under the control of the Official Assignee. This would include Mr Olliver’s shares in The Pheonix Trust Company which in turn owns all the shares in Long River Investments, the owner of the golf course land. The Official Assignee is empowered to sell a bankrupt’s assets to repay creditors with the proceeds.

However, it is probable that 1543 will appoint a receiver to Long River which would effectively keep the golf course land under the control of 1543 as it is the primary secured creditor of Long River Investments. 

Alternatively, there may be a clause in the mortgage documents that allows 1543 to become what is referred to as “a mortgagee in possession”. This does not require the appointment of a receiver.

Either way 1543 would effectively control and be able to deal with the land.

Greg Olliver’s tactic of seeking an adjournment at the court hearing is the same tactic he used with the recent KWGS High Court liquidation application against Gulf Harbour Country Club 2016. In other words, the adjournment is likely just a delaying tactic. We will keep you informed of developments.”