Developer who folded companies owing $11m loses fight against another liquidation

Tuesday, 10 September 2024

Once a talkative character, Christchurch developer Harry Crawford is no longer taking calls from The Press.

An embattled Christchurch developer who registered a new Porsche days before folding three companies has lost a battle against having a fourth liquidated.

The tangled web of Harry Crawford’s multitude of property development, trust and shell companies has not prevented the High Court from ordering F Trust Holdings Ltd into liquidation after it defaulted on its tax obligations, owing Inland Revenue over $300,000.

Two creditors claiming to be owed more than $1.2 million combined indicated their opposition to the liquidation.

But Brougham St Townhouses Ltd, which claims to be owed over $1m of that, is a company of which Crawford was formerly a director, and is now under the apparent control of his friend and ex-business partner, Danielle Bridge.

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The other creditor, Mikaela Peters, who claims to be owed just shy of $220,000, appears to be involved with several of Crawford’s companies and is listed as residing at the same home address as him, the High Court was told in Thursday’s liquidation hearing.

In an affidavit to the court she said she expected to be paid after the company’s Rotherham St development was completed this month.

Observing in his decision that there had already been several adjournments over liquidation, Associate Judge Owen Paulsen declined to allow any further delays.

The near completed townhouse project on Rotherham St in Riccarton.

F Trust Holdings, previously known as Crawford Capital Ltd, was ordered into liquidation on Friday, according to a judgment released to The Press on Monday.

The company’s lawyers tried their best to delay the liquidation. In mid-August applications for a judicial review and stay were filed.

The statement of claim alleged that multiple settlement offers had been sent to IRD but were consecutively refused. It claimed the refusals were based on “incorrect and irrelevant considerations”, the judgment noted.

In an affidavit, Crawford said he had paid $100,000 to IRD and that the debt was reducing. He added that liquidation would be “disastrous for FTH and its shareholders, investors and tradespeople”. He said the company’s 13-unit Rotherham St development was near completion, with a 19-unit Brougham St development in the planning phase and a Grenville St project of 13 townhouses about to commence.

Associate Judge Paulsen noted that F Trust Holdings had been granted several adjournments since May on the basis that it would seek funding to pay its debts.

The stay applied for was contrary to the understanding the court and IRD were prepared to agree on previously to allow the company further time to raise funds. It was also clearly without merit, the judge observed.

“I consider it a proper inference that the judicial review proceeding and the appearances have been filed to buy time in the face of a clear indication that further adjournments of the liquidation proceeding would not be granted,” Associate Judge Paulsen said.

An older model Porsche 911 GT3. The 2024 GT3 starts at a base price of $384,500 (File photo).

“Brougham Street Townhouses Ltd has not put any evidence before the court that it is a creditor … despite being given the opportunity to do so…

“Ms Peters is just one creditor of FTH and is closely associated with Mr Crawford and some of his companies …(She) has not provided me with any evidence which could lead me to a view that an order for liquidation should not be made.”

Crawford declined to comment when contacted by The Press.

Three of his registered companies were placed into liquidation earlier this year after the High Court ordered Crawford Group to pay about $1.4m in compensation to two Phillipstown homeowners over defaulted purchases of homes in Olliviers Rd.

The first liquidator report estimated the company’s debts were close to $11m.

Crawford registered a new Porsche 911 GT3, which has a starting price of $385,000, to Crawford Group Ltd (the now liquidated Christchurch Group) days before the companies were placed into liquidation.

He previously said he regretted that particular purchase.

He also previously told The Press that he was stepping down from the property game completely. “With everything going on it’s been too hard to continue, when you’ve got someone constantly chasing you for mistakes I’ve made.”

Bridge has been approached for comment. Peters could not be reached.