Eric Watson - Scum.

[Rich102]

Eric Watson says he doesn't have the assets to pay rival Sir Owen Glenn the £29.1 million ($54m) which an English judge ordered him to hand over, a New Zealand court has heard.

Glenn celebrated a major legal victory over his former Warriors co-owner in July when the High Court in England and Wales ruled Watson had engaged in "deliberate deception" when the pair set up a joint venture investment company.

Glenn had seen a large chunk of his fortune tied up in the arrangement, and had spent the past five years fighting in English, Californian and British Virgin Islands courts to extricate himself and his £129m ($250m).

The UK High Court ordered that Glenn's company Kea Investment is entitled to up to £43.5m in compensation from Watson, as well as interest compounding at 6.5 per cent per annum.

Watson has appealed over the interest rate and Kea says if he is successful the compensation awarded will drop by about £20m.

The court also ordered that Watson make an interim payment of £25.3m and £3.9m on account of costs.

However, Kea says that Watson has not yet paid that money.

Kea has also told the High Court at Auckland that Watson's lawyer says the Kiwi businessman was "unable to pay the sums ordered by the court as he does not have the assets to do so".

Kea's submission over Watson's ability to pay was detailed in a decision from Justice Matthew Palmer over whether Glenn's company could have access to court documents in an unrelated dispute between Cullen Group and the Inland Revenue.

Cullen Group, associated with Watson, is challenging assessments by IRD that a complicated series of related-party loans using Cayman Islands vehicles in 2002 amounted to tax avoidance, requiring the payment of back taxes, and interest, totalling $112m.

Glenn's Kea, while considering how to enforce the UK judgment, applied to the High Court at Auckland for access to details of the tax dispute.

Kea was keen to see documents and evidence relating to Watson's direction and conduct of the affairs of Cullen Group and his other interests held through trust or corporate vehicles.

Justice Palmer said there was a reasonable basis to assume the documents sought may contain relevant information to enforcement of the UK judgment.

"Enforcement of a foreign judgment in these circumstances constitutes a public purpose, not just a private purpose. It contributes to the orderly and fair administration of justice," the judge said.


www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12174476

 

[Rich102]

EW told the judge he had no money to pay SOG, that he was living on money borrowed from his mother.
Bulls**t! If that's the case force him into bankruptcy. He has hidden his money and I hope the judge finds him in contempt.

This is a very sad, nasty man. He knows he owes SOG the money, he knows SOG has terminal cancer and heart problems, yet he wants to drag this out as long as possible.

Contemptable!

The Warriors are well rid of him.

 

[Rich102]

Sir Owen Glenn is considering asking an international court to appoint receivers to his nemesis Eric Watson's business interests.

In September a United Kingdom court ruled Glenn's company Kea Investments was entitled to £43.5 million (NZ$80.2m) compensation from Watson with annually compounding interest at 6.5 per cent per year.

The long-running legal battle related to hundreds of millions of dollars Watson and Glenn put into a joint European property venture called Spartan Capital. Following the proceedings, brought by Glenn, a judge found two loan agreements totalling £129m set out between Kea Investments and Watson and paid to Spartan Capital were void. The loans had been repaid to Kea Investments, and it was entitled to claim proceeds from the £129m.

Watson has appealed the interest rate. If successful, the compensation would be about £20m lower.

There was also an order for interim payment of £25.3m and £3.8m for costs, an order to provide financial documents and information about all his assets, and an order Watson could not dispose of, or deal in or diminish, assets worth more than £100,000 without notice.

Now a New Zealand judgement has been handed down giving Kea Investments a leg-up in finding out where Watson is holding his assets.

Kea Investments applied to the High Court in Auckland for access to court documents in a $60m New Zealand tax avoidance proceeding between Watson's company Cullen Group and the Commissioner of Inland Revenue in August and September.

In a judgement updated on December 10 Justice Matthew Palmer said access by Kea was in the interests of open justice and "facilitates the orderly and fair administration of justice" in contributing to enforcement of a foreign judgment.

Kea successfully applied to the High Court of England and Wales for freezing orders restraining companies, including Cullen Group, from disposing of, dealing with or diminishing the value of assets up to the value of £47m, the judgement said.

Kea was now considering its enforcement options, including whether to invite the English court to appoint receivers in respect of Mr Watson's interest in a company called the Valley Trust, which Kea understands holds the shares in Cullen Group, the judgement said.

Valley Trust featured in the "factual matrix" of the Inland Revenue proceeding, Palmer said.

In a UK judgement from July Kea said Watson's modus operandi was to use a complex web of trusts and companies as nominees for him, and that he held companies via third parties. He also he entered into arrangements, often undocumented, which meant that relationships set out in formal legal documents did not reflect a true position, Kea alleged.

Glenn said one such vehicle was the Valley Trust.

"Mr Watson should be in no doubt over my determination to do whatever is necessary to ensure he meets his obligations under judgments in my favour - if necessary, pursuing him to the ends of the earth and taking action against his trust and company structures," Glenn said.

Glenn said Watson had been ordered to appear before a UK judge to answer questions about his assets in two days of cross examination on December 19 and January 24.

"I understand that these hearings will take place in open court and that if he fails to answer questions Mr Watson will be in contempt of court."

In Palmer's judgement Kea said Watson's solicitor stated the millionaire was "unable to pay the sums ordered by the court as he does not have the assets to do so".

"I do not accept this. I believe that he is being untruthful and hiding assets behind trust and company structures he controls," Glenn said.

Cullen Group abided by the court's decision to grant access to the court record but opposed the rest of the application as to access to other documents.

Kea was granted access to the formal court record, including judgments, orders and minutes of the court, the pleadings of both parties, both parties' opening and closing submissions at trial and the index to an agreed bundle of documents Kea's request for access was granted provided the documents were used only for the purpose of the related proceedings.

"Kea is not fishing for information in order to consider whether to initiate private litigation," Justice Palmer said.

"Rather, Kea's purpose is to seek to enforce a judgment of the High Court of England and Wales which has been issued and in respect of which that Court subsequently granted freezing orders and disclosure orders. That is a reasonable and legitimate purpose."

Palmer is yet to issue a judgment on the Cullen Group versus IRD case.

www.stuff.co.nz/business/money/109317532/sir-owen-glenn-not-giving-an-inch-in-quest-to-claim-back-money-owed-by-eric-watson

 

[Philip_Smith007]

And the Lawyers keep getting richer.
Hold on, how is EW paying them?

 

[SpaceMonkey]

Frankly I’m glad neither of those blokes are anywhere near the club these days. Short arms, long pockets.

 

[JJ]

Frankly I’m glad neither of those blokes are anywhere near the club these days. Short arms, long pockets.

Think that's an unfair criticism of Glenn - generally anyway, the Warriors perhaps a different story

Watson just looks awful here - but to me always has... Not saying I am a Glenn fan, but he seems the better human here

 

[SpaceMonkey]

Oh for sure Watson is dodgier- but the whole affair with both is a circus we don’t want or need.

 

[SpaceMonkey]

Glenn didn’t impress me when he was involved in the club either. Too emotional and prone to grandstanding. For all Watson’s faults (and there are many) the one thing I generally give him was he usually let the people he hired to run the club do their jobs and didn’t interfere.