I've been charting the adventures of failed Christchurch property developer Dave Henderson for some time now. It's a tangled and murky tale indeed and it would be easy to devote an entire blog to the business affairs of the man hailed as an 'urban visionary' by Mayor Sideshow Bob Parker .
But I think I've managed to outline most of the 'themes' that characterise 'Hendo'.
One of my principal reasons for writing about our libertarian hero was that I was absolutely staggered and appalled that Henderson seemed to have no difficulty securing big loans from obliging finance companies and banks. It seemed to me that everyone - the so-called 'economic wizards' of the free market - were seduced by Hendo's self confidence, his belief that he was always right.
Did no-one bother to do a background check on the guy? Why were no red flags raised as soon as Hendo came looking for a loan?
The answer to that is largely because Hendo was in the right place at the right time.
Hendo made his move when the economic bubble was still expanding, thanks to an over-heated housing market. The finance companies and the banks were falling over themselves to lend money. Hendo capitalised on this.
But, of course, the bubble inevitably burst and many property developers - like Hendo - were found out. The finance companies and the banks were left with big debts on their books . The finance sector simply disintegrated and effectively no longer exists in this country.
But even while all this happening, Hendo still managed to secure $17 million from his friends on the Christchurch City Council. In return, the ratepayer got lumbered with five over-valued buildings.
Yes, its true that history does repeat itself - the first time as a tragedy, the second time as farce.
But there is now a certain inevitability to the way events are unfolding. Hendo's empire has been virtually wiped out and he is now is facing bankruptcy - not an uncommon experience for 'The Great Man'.
He avoided the big 'B' this week when he was given a week to pay Perpetual Trust some $157,000.
The issue will come before the High Court again on Tuesday.
How long will Hendo will be able to fend off bankruptcy? How long will this farce be allowed to continue? Stay tuned.
Henderson in his shifty shifting world has still plenty of Companies to offset losses against yet.
ReplyDeleteAs one Company gets fragile he diverts income to a stronger company. Eventually even the High court will realise what is going on.. and then a precedent will be set.
Shelter companies will no longer work.
Thanks Hendo