Stonewood $ 3.5 million payment revealed

A lawsuit against Queenstown Lake Mayor Jim Boult and another manager of a bankrupt construction company has been settled with a payment of $ 3.5 million to its liquidators, according to a new report.

Stonewood Homes Ltd and its associated companies went into liquidation in Christchurch High Court in February 2016 with millions of dollars owed to creditors.

The company’s liquidators, Rhys Cain and Rees Logan, sued Mr Boult and Stonewood founder and director Brent Mettrick, alleging that they continued to operate when the companies were insolvent.

Part of the legal proceedings also sought to recover the alleged “excessive remuneration” paid to Mr Boult.

In August, Mr. Cain confirmed that the proceedings had been settled but did not elaborate on the details.

The latest semi-annual report from the company’s liquidator released on Friday indicates that the proceedings were settled and withdrawn after the payment of $ 3.5 million without acknowledgment of liability by the defendants.

The respective contribution of each paying party to the settlement amount was confidential, he said.

The liquidators had received just over $ 25 million in claims from creditors of Stonewood Homes Ltd, as well as $ 13.6 million from its associated company Stonewood Homes New Zealand Ltd.

Only $ 4.6 million each had been paid by the two companies and the liquidators said the funds received were insufficient for additional payments to secured creditors and that there would be no dividends for unsecured creditors, according to The report.

During the past six months, the liquidations of two other associated companies – Sterling Homes (Christchurch) Ltd and Premium Living Ltd – have been completed.

Contacted, Mr. Boult declined to comment, citing a confidentiality agreement.

The liquidation was to be completed within the next two or three months.

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Elaine R. Knight