7 Mar 2011

Loan to Serepisos unlikely to eventuate, IRD tells court

1:07 pm on 7 March 2011

The Inland Revenue Department says it does not have confidence that a loan offered to embattled Wellington property developer Terry Serepisos will eventuate.

Last month Mr Serepisos said the $100 million loan from an Indian businessman would settle his debts.

But at the High Court in Wellington on Monday, the Department said it did not think the loan would be forthcoming.

The Department also questioned whether an alternative proposal put forward by Mr Serepisos to offer commercial and residential properties as security would be enough to cover the debt of five of his companies.

The IRD is seeking $3.5 million in unpaid taxes and has threatened to liquidate the companies.

But Mr Serepisos' lawyer, Justin Toebes, told the court his client was committed to repaying the debt in full.

The case has been adjourned until Thursday.