Sally Ridge staves off bankruptcy but BNZ debt looms

Socialite Sally Ridge has a won a pause in bankruptcy proceedings brought by her former partner’s firm but another creditor has emerged. 

BNZ has made an application as a substitute creditor to bankrupt the reality TV star, a recent court decision reveals.

Associate Judge Tony Christiansen, who presided over Monday’s hearing, has scheduled a hearing for BNZ, which claims it is owed almost $300,000 by Ms Ridge.

Monday’s hearing was about court costs stemming from Ms Ridge and her daughter Jaime’s failed attempt to get a 50% stake in Adam Parore’s firm Small Business Accounting (SBA).

While Ms Ridge was granted a stay, to hold off the proccedings, she now faces a further hearing in two weeks time to determine if BNZ can be substituted as a creditor for SBA.

That hearing relates to debt, which BNZ says arose late September by virtue of Ms Ridge’s family trusts as well Mr Parore’s.

Associate Judge Christiansen said Ms Ridge through her trust owned a property with significant equity that was more than sufficient to meet the bank’s demands. Furthermore there were was no substantial claim of evidence that a delayed payment would prejudice SBA. (see the judgment attached)

Ms Ridge wanted bankruptcy proceedings to be held off as she appeals the earlier SBA decision. 

While the trial judge in the SBA case, Justice Murray Gilbert, said the claim “failed at the first hurdle,”,Associate Judge Christiansen was not swayed by Mr Parore's lawyer Zane Kennedy that the appeal was hopeless.

The judge said the Court of Appeal will not necessarily agree with a trial Judge’s factual conclusions. 

“Ms Ridge’s advisers have engaged the opinion of a Queen's Counsel who, in the course of a 15-page memorandum, has addressed in detail those reasons why the appeal of Judge Gilbert’s judgment should proceed.”

“In the circumstances the Court is not prepared to consider that the appeal is hopeless and does not regard submissions of lack of prospects of success as persuasive in the circumstances.”

vyoung@nbr.co.nz

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