Apprentice boss in cash crisis
http://www.stuff.co.nz/business/indu...in-cash-crisis
The Apprentice star Terry Serepisos is being chased by creditors and is struggling to pay about $2 million in unpaid rates and ground rents to Wellington City Council.
A Dominion Post investigation has learnt that the council has met regularly with Mr Serepisos – but he has yet to settle the substantial debt.
It is understood Mr Serepisos has told the council he is struggling to pay – and if the council takes action to recover the money it could jeopardise the Wellington Phoenix football franchise he owns. Mr Serepisos said yesterday that he had pumped a total of $5 million into the football club, which this week received a five-year extension to continue in the A-League.
The Dominion Post has learnt the council has offered repeated extensions at meetings, which have included chief executive Garry Poole, amid growing concerns at the mounting debt.
The council is believed to have already provided Mr Serepisos with extra time to pay his rates because senior staff fear potential repercussions for the Phoenix. It is also concerned that forcing Mr Serepisos' hand could lead to financial trouble for other organisations that do business with him.
Though Mr Serepisos has made some payments in the past year, it is understood he owes about $2 million. Local councils have the legal ability to approach banks that hold a mortgage on a property to demand payment when the owner fails to do so.
Mr Serepisos refused to discuss any aspect of his rates yesterday, saying it was "confidential". He said that, like any property developer, he had been affected by the recession: "There is a global crisis here, I am certainly not immune to the global crisis." He was owed "millions", including $450,000 in accommodation from the stalled movie Kingdom Come and $1.6m from a failed construction company.
"People owing me money puts a strain on cashflow as well. It is a domino effect right across the board. If he can't pay you, you can't pay him, that sort of thing.
"It is not just me, guys, it is the whole world. All I'm saying is I'm not immune to the global crisis. People owe me a lot of money."
Mr Serepisos said he had spent vast sums promoting Wellington, bankrolling the Phoenix and working with several charities and the community.
"I'm pouring in millions and millions of dollars to promote this city and doing all these things I do. And I feel a little disheartened that a handful of people are taking pot shots at me."
Mr Serepisos owns several companies including 79 Manners Street Ltd, Century City Developments Ltd, Century City Ltd, Century City Football Ltd and New Millennium Design.
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It has been reported that debts ranging from $158 to $71,000 related to those companies have been referred to a debt collection company and listed with a credit reporting agency.
Figures obtained by The Dominion Post under the Official Information Act show that commercial ratepayers have unpaid bills to Wellington City Council of $5.6 million. The largest individual bill is $331,000.
Three businesses are also $854,000 behind with ground lease payments, with one leaseholder owing the council $478,000.
The council would not say who any of the ratepayers involved were. Mr Poole has refused to comment on any aspect of dealings with Mr Serepisos, citing privacy.
The law gives councils priority over other creditors to retrieve outstanding rates when a property is sold. This does not extend to ground lease debt and councils have to wait in line with other creditors.
Mr Poole said "a fair and equitable approach" was taken on the collection of rates and unpaid debts: "However, because every case is different, we also have the ability to negotiate payment with various debtors to ensure that all rates are paid in full."
The council could also take legal enforcement action to retrieve money owed, Mr Poole said.
A 10 per cent penalty is added to rates remaining unpaid after the due date. An additional 10 per cent is added to rates unpaid from previous financial years.
Penalties for late payment of ground lease rentals depend on terms and conditions of each respective lease. Penalty payments ranged up to 18 per cent a year, Mr Poole said.
A Dominion Post investigation has learnt that the council has met regularly with Mr Serepisos – but he has yet to settle the substantial debt.
It is understood Mr Serepisos has told the council he is struggling to pay – and if the council takes action to recover the money it could jeopardise the Wellington Phoenix football franchise he owns. Mr Serepisos said yesterday that he had pumped a total of $5 million into the football club, which this week received a five-year extension to continue in the A-League.
The Dominion Post has learnt the council has offered repeated extensions at meetings, which have included chief executive Garry Poole, amid growing concerns at the mounting debt.
The council is believed to have already provided Mr Serepisos with extra time to pay his rates because senior staff fear potential repercussions for the Phoenix. It is also concerned that forcing Mr Serepisos' hand could lead to financial trouble for other organisations that do business with him.
Though Mr Serepisos has made some payments in the past year, it is understood he owes about $2 million. Local councils have the legal ability to approach banks that hold a mortgage on a property to demand payment when the owner fails to do so.
Mr Serepisos refused to discuss any aspect of his rates yesterday, saying it was "confidential". He said that, like any property developer, he had been affected by the recession: "There is a global crisis here, I am certainly not immune to the global crisis." He was owed "millions", including $450,000 in accommodation from the stalled movie Kingdom Come and $1.6m from a failed construction company.
"People owing me money puts a strain on cashflow as well. It is a domino effect right across the board. If he can't pay you, you can't pay him, that sort of thing.
"It is not just me, guys, it is the whole world. All I'm saying is I'm not immune to the global crisis. People owe me a lot of money."
Mr Serepisos said he had spent vast sums promoting Wellington, bankrolling the Phoenix and working with several charities and the community.
"I'm pouring in millions and millions of dollars to promote this city and doing all these things I do. And I feel a little disheartened that a handful of people are taking pot shots at me."
Mr Serepisos owns several companies including 79 Manners Street Ltd, Century City Developments Ltd, Century City Ltd, Century City Football Ltd and New Millennium Design.
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It has been reported that debts ranging from $158 to $71,000 related to those companies have been referred to a debt collection company and listed with a credit reporting agency.
Figures obtained by The Dominion Post under the Official Information Act show that commercial ratepayers have unpaid bills to Wellington City Council of $5.6 million. The largest individual bill is $331,000.
Three businesses are also $854,000 behind with ground lease payments, with one leaseholder owing the council $478,000.
The council would not say who any of the ratepayers involved were. Mr Poole has refused to comment on any aspect of dealings with Mr Serepisos, citing privacy.
The law gives councils priority over other creditors to retrieve outstanding rates when a property is sold. This does not extend to ground lease debt and councils have to wait in line with other creditors.
Mr Poole said "a fair and equitable approach" was taken on the collection of rates and unpaid debts: "However, because every case is different, we also have the ability to negotiate payment with various debtors to ensure that all rates are paid in full."
The council could also take legal enforcement action to retrieve money owed, Mr Poole said.
A 10 per cent penalty is added to rates remaining unpaid after the due date. An additional 10 per cent is added to rates unpaid from previous financial years.
Penalties for late payment of ground lease rentals depend on terms and conditions of each respective lease. Penalty payments ranged up to 18 per cent a year, Mr Poole said.
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