7 Aug 2008

Hanover issues proceedings against Petricevic

3:58 pm on 7 August 2008

Hanover Finance has issued proceedings against Bridgecorp founder Rod Petricevic.

Separate bankruptcy proceedings against Mr Petricevic are under way on Thursday at the High Court in Auckland, where it emerged that he owes Hanover Finance about $4 million.

The amount owed is much more than was previously known.

The Court of Appeal recently heard Mr Petricevic is involved in two other sets of proceedings.

He is also being prosecuted under the Securities Act and Company Act, and is a defendant in civil proceedings trying to recover $2.7 million from him.

A lawyer for Hanover Finance says it has issued proceedings to enforce a guarantee obligation and it appeared at Thursday's bankruptcy hearing as a creditor in support.

It is understood Mr Petricevic was a guarantor for a failed loan to Bridgecorp.

A High Court judge will decide whether to rule on the bankruptcy case on Thursday.

The High Court ruled in May that Mr Petricevic owed Bridgecorp more than $600,000 because the company paid his 2006 personal income tax.

Mr Petricevic has denied owing the money and says he is broke. He failed to lodge a $576,000 payment with the court in July.