Terry and his money (aka gone...or not..)

 

2 papers now, no ads, no explanation

hmmm

 

And Bob's also a big boxing fan. Could the Nix survive an owner like that?

 

Could YF? 

 

 

I wonder if they employ a Private eye and intercept phone calls as well, they seem to be sinking to that Tabloid level.

whats up with that

�

I worked for 9 months at an investment bank in London last year and dealt with 5-10 "Terry's" a week, guys who had made it big in the 90s property boom, are heavily leveraged (i.e. funded through debt) were now faced with falling asset values caused by weakness in the investment/development market and commercial vacancies, and liquidity and cashflow problems across their portfolios.� The types of responses that he is coming up with are also completely typical, delay, delay,�delay.� Put it this way - does anyone think that Terry would be looking for money offshore if there was any chance he could get it through his lenders or any of the usual channels in Australia/NZ?� No - that implies that his credit is shot here and that the financing community won't deal with him.� That is real and it is a problem because those people have dealt with him for years, they know the true financial picture (unlike us) and have leant money in the past.� That the tap has now been turned off is alarming.

�

The simple problem here is that unless property prices and retail occupancy rates bounce back to pre- 2007 levels, Terry will continue to struggle.� He will, like all property owners, continue to face a rolling level of refinancing requirements and that is the time when losses become crystallised and he may well default on his banking covenants (he probably already has).� He may have restructured his banking facilities so that he can meet his ongoing interest liabilities but there are still fundamental problems at the core of these issues i.e. much of the property he owns will be worth less than what he was leant to finance its purchase).

�

For those who don't want this reported on, have they actually thought about the fundamental issue here?� Terry owes $3.5 million in tax to the IRD - money that he seems unable or unwilling to pay, and no-one in NZ or Australia will lend him that money.� The IRD have no political motive, they just want to collect money owed to them.� Liquidating companies is a last resort and in some ways is a negotiating tactic, the IRD are happy to extend payment of large debts so long as their is a clear plan developed to pay it back.� I understand that an arrangement was reached with the IRD last time this arose, the implication must be that payments have since been missed.

�

On the money that is owed to the IRD it should ring alarm bells that part of the money owed is for player�kiwisaver liabilities.� That money isn't even his (as opposed say to tax) - that is money that he is supposed to pay across�to the personal kiwisaver accounts of the players through deductions from their wages.� Owing money to the IRD is one thing, but effectively delaying money owed to employees is a different story.

�

I do this for a job but I have no insight into the actual facts here - I am purely using my knowledge of how banks and the IRD deal with lenders to explain the situation.� If anyone is interested I can write more