Share debt appeal remitted

Press, 8 March 1988, Page 31

Share debt appeal remitted

PA Wellington An Auckland company director who allegedly owed $370,976 for shares in the Pacific SunjHotels company was arrested at Auckland Airport en route to Fiji, the Court of Appeal was told.

Nicholas David Iverson was appealing against a decision by Mr Justice Thorp on January 13 declining to set aside a warrant for Iverson’s arrest granted on application from the sharebrokers, Greville and C 0.,: on December 30.

Greville and company, respondents in the appeal case on February 18, had filed a petition for bankruptcy against Mr Iverson

at the same time it applied for a warrant. The Appeal Court judgment, delivered by !Mr Justice Somers, remitted to the High Court Mr Iverson’s application for discharge, preserving his arrest pending rehearing of the petition for bankruptcy, if that should intervene. I: ■,,

i Bail will continue as set at the Januaryi 13 hearin §?- . _ .h:

The Appeal Court judgment said that on December 30, Greville and Co., filed a bankruptcy petition against ■ Nicholas David Iverson ( founded upon an alleged debt of $370,976. ■ j | j i The act of bankruptcy was said to 1 be that

Mrlverson[ was about to leave Nevj’ Zealand with intent to delay , or defeat creditors. I i At the same time, Greville and[ Company applied under section 63 of the Insolvency Act for a warrant for arrest of the debtor. | ' [ The Appeal Court judgment said the Cburt was unable to accept (submissions for Mr Iverson that bankruptcy proceedings had to be filed before a warrant for arrest could be issued.| The Appeal Court judgment said Grevple and Company [was required to show to the January 13 hearing Why Mrl Iverson should nol be discharged.

Existence of the debt, incurred in purchase of shares in a public company, Pacific Sun Hotels, Ltd, was disputed by Mr Iverson in the hearing.

Mr Justice Somers said Mr Iverson deposed that the shares in Pacific Sun Hotels were bought by him on behalf of another company called Hotel Development Corporation, whose lawyer he was.

Mr Iverson’s case to the application to discharge hearing on January 13 was that he was leaving New Zealand for a holiday in Fiji where he had business interests and had no intention of embarrassing or. impeding proceedings.

He denied he had been threatened with . bankruptcy, as was deposed on behalf of the creditor, and the Judge felt unable to resolve the conflict, the Appeal Court judgment said.