May 2013: More Court action has been started by HES Finance (Jimmy's finance company) trying to claim loses incurred due to bad decision making by HES Finance and Jimmy.
Jimmy as guarantor repaid the BNZ business premises loans and then assigned (gave) the paperwork (now worth $0) to HES Finance.
HES Finance chose to force mortgagee sale of the premises at 153 Madras Street via JT Law, forcing the tenant, Heat Exchanger Services to leave.
Despite have been offered $500,000 and being advised not to sell the premises by mortgagee sale, nor vacant, nor whilst it having recently been in the Christchurch CBD red zone, nor without an engineering report, nor while insurance options were unclear, HES Finance attempted to auction the vacant premises.
The conditions of sale A 1.2 prevented Julian or James or anyone bidding on their behalf from bidding. But conditions of sale A 1.5 allowed the vendor, HES Finance with whom James is associated, to bid.
The auction was postponed.
Then HES Finance tried to sell the premises by tender.
The tender process also failed to sell the premises for more than $500,000.
The premises sold in 2012 resulting in a loss in excess of $100,000 taking into account commision, interest due to vacant possession by HES Finance and legal expenses.
Letter from JT Law
Auction conditions of sale page 1