Cash crisis for Serepisos
April 24th, 2010 at 12:06 pm by David FarrarThe Dom Post reports:
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.
I have to say that one shouldn’t make sponsorship commitments, if you can’t provide the support promised. Not paying rates, so one can continue the sponsorship is not an enduring solution.
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.”
Which is all great, and I think the Phoenix are great. But the obligation is to meet your legal and contractual obligations first. If you are unable to pay your rates, because of the Phoenix sponsorship, then you are not sponsoring the Phoenix – I am – along with all the other ratepayers who do pay our rates.
And it goes without saying how bad a look it is for The Apprentice TV show, to have the boss in the media for being unable to pay his bills. Maybe the winner should make sure they get the $200,000 in advance!
Another Dom Post story also has details of other creditors claiming they have not been paid.
April 24th, 2010 at 12:26 pm
It’s worth noting that Donald Trump and his precarious structure of companies have been in and out of the bankruptcy courts many times. TVNZ could argue they are faithfully following the script of the original series!
Vote:April 24th, 2010 at 12:29 pm
Serepisos, YOU ARE FIRED!!
Vote:April 24th, 2010 at 12:32 pm
What did the article say in the Dom Post the other week, he owned 11 houses in his (really is his) street. Up on Mount Vic he would probably only have to sell 2 to cover the $2 Million. Could be a storm in a tea cup after all it’s this type of news that seems to sell papers these days.
Vote:April 24th, 2010 at 12:48 pm
I don’t think the debt should be forgiven, but a cost benefit study should be done and a confidential agreement reached. Maybe the City should take an financial interest in the Phoenix in lieu.
Vote:April 24th, 2010 at 1:33 pm
And just how much ratepayer money should the long suffering captives of Wellington City pour into the gaping hole before you think enough had been wasted.
Vote:Just pay your bills Terry and get your self promoting fingers out of the ratepayers pockets. Yes, as you are not paying then they are, one way or another..
April 24th, 2010 at 2:05 pm
gravedodger
Wellington City Council is at almost no risk from unpaid rates or ground rents. This is why the Council has been able to be generous to him up to now. In both instances the Council can ultimately seize and have sold the properties concerned, just like a mortgagee can. The Council actually ranks higher than a first mortgagee in such cases, so would loe little if anything.. The Council has it hands on the plunger which when pushed will cause the guy’s empire to implode.
In the early 1990′s the then landlord (or it may have been unit title owners) of Old Wool House in Featherston Street walked away when land re-valuations went through the roof at the time the 21 year ‘Glasgow’ ground lease was up for renewal, the Council being the lessor. This wiped owners’ equity in the building right out (Bob Jones at that time walked away from 44 Wall St, NY and damage was controlled as the mortgage there was ‘ringfenced’ to the building only as many american mortgages are).
Vote:April 24th, 2010 at 2:06 pm
Shock, horror. A big time property developer can’t/doesn’t pay his bills.
You guys should come to Auckland – this is par for the course here!
Vote:April 24th, 2010 at 3:13 pm
Except if he’s a good property developer he will be using OPM (Other People’s Money) and in the current market he may well lose money by selling assets.
Sounds a bit like the whining non-excuses of my 4 year-old daughter.
Vote:April 24th, 2010 at 3:37 pm
Questions need to be asked of Kerry Prendergast’s role in this. One of the mates of her property developer husband can somehow get away with not paying $2million in rates!?!
She needs to front up about what discussions she had with Serepisos and tell people why she has let him get away with this while the rest of the city effectively subsidises his lifestyle.
Vote:April 24th, 2010 at 3:45 pm
Yeah, right after she explains why you need resource consent to put a poxy window in a rotten old villa in Mt Vic, while the airport and Weta Workshops can – without any notification or public consultation – erect a massive great sign on the side of a hill.
Luckily it’s total lack of imagination and class caused such a backlash that they pulled the idea and thus ironically the public got the very say which the council and their conies decided that should not have.
Vote:April 24th, 2010 at 3:51 pm
Andrew – Kerry’s role if any would be such to promote the wellbeing of Wellington. As I previously noted the potential loss to the Council is virtually nil – they hold the Ace of Spades and all the trumps. However the Council (probably personified in the CEO) would seem to be extremely reluctant to pull the plug on Terry unless really necessary and it seems the time has almost come.
It is like a saying with banks – if you owe a modest sum and cannot pay – it is your problem. If it is a very large sum, it is the bank’s problem.
Vote:April 24th, 2010 at 3:56 pm
The issue is not a matter of whether or not the Council particularly needs the money – it’s corrupt and whatever shonky deals Prendergast has like this with property developers needs to be exposed.
It is not the Council’s role to subsidise his lifestyle. If he owes people money he should pay up.
Vote:April 24th, 2010 at 4:37 pm
Councils, as a rule, aren’t in the habit of bankrupting people for the sake of it. They tend to rationally examine the ability of people to pay, their willingness to talk to the council and give financial information, and strike a payment plan. Wellington is sure to have done this. It’s not corrupt or shonky by any stretch of the imaginaton – unless of course, the council officers were politically pressured into changing their behaviour when dealing with any distressed developer.
After all – the last thing the council wants is to see an unfinished project sitting in the heart of Wellington for years. It would probably suit them just fine if they knew Serepisos could finish his project and then pay the council (plus any interest as agreed).
However, its a very poor show for Serepisos to be funding a sports team when he can’t fund his building rates. I don’t care how much face he loses, if he is not paying his rates or taxes because he is propping up a sports team, he has not got his priorities straight.
Vote:April 24th, 2010 at 4:45 pm
Also this isnt just rates – a significant part of what he owes the city council is actually ground rental and I guess the WCC will have to wait in line with all the other creditors while our rates bill continues to grow.
Also someone made the point that he could just sell one of his houses – I would hazard a guess that he has 100 per cent borrowings on most of those.
Lot’s have people have known it was a house of cards and Kerry Prendergast has not only condoned his lifestyle but is apparently helping to fund it by offering him his own credit facility at city hall.
Vote:April 24th, 2010 at 5:04 pm
> You guys should come to Auckland – this is par for the course here!
It’s par for the course here in Christchurch as well (although down here the council tends to be kinder to them)
> “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.”
I wonder what it is that gives these failed property developers their persecution complex? Given that they go around more or less gambling away other peoples’ money.
Vote:April 24th, 2010 at 5:19 pm
Not paying rates probably means he is in breach of his banking covenants, so they will start chasing him or at least put up his interest rates and so on. Drop the sponsorship commitment fast or face being wound up.
Vote:April 24th, 2010 at 5:36 pm
bobux: ‘It’s worth noting that Donald Trump and his precarious structure of companies have been in and out of the bankruptcy courts many times. TVNZ could argue they are faithfully following the script of the original series!’
Were my thoughts exactly!
When I heard they were doing a NZ The Apprentice my ears pricked up and I thought ‘Oh that is interesting I wonder who they will pick for that’ and when I heard it was him I couldn’t stop laughing…
Instead of picking someone onto it like Bob Jones (who was probably all Dragons Den’d out) or your Graham Hart’s they pick Terry Seripisos…
It is interesting what Bob Jones said when he last go interviewed on the radio (by Chris Laidlaw or someone on National) he said a remark that he can predict all the property developers/spot them a mile away ‘the ones who will go bust’ cause ‘they all do the same thing’… He woulnd’t elaborate when pressed on this but he hinted at a nugget of truth/property investor wisdom and I think reading between the lines from his other remarks is you don’t sell your buildings or look for the capital gains (from colossal debt) but just collect your rents like and onto it Landlord will do (just like in ‘Monopoly’)…
I am NOT SURPRISED that Seripisos is having cash flow issues, you don’t need to read a Robert Kiyosaki book to know that you have to have cash flow…
Vote:April 24th, 2010 at 5:47 pm
ppfftt we in CHC think nothing of lending 17 million to a washed up property developer…when asked why, please explain Christchurch City Council ,get fobbed off and told to “mind ya business”…hence the noose for side show Bob Parker very soon…
Vote:April 24th, 2010 at 5:55 pm
True story. A acquaintance of mine is a semi-distant relative of Terry’s. They share the same surname. This person (‘Fred’, not his/her real name) has been doing some house renovations, and when they called looking for trades people they ask his/her name.
Vote:-They say “Fred”
-Tradie ask “Fred who?”
-Dodging the question they say “Fred from [suburbname]”
-Tradie reply “No, what’s your surname Fred?”
-They fold, and say “Serepisos”
-Many the tradies express a disinclination to take the offer of business any further forward. Click!
-”Fred” moves to the next tradie on the list
April 24th, 2010 at 7:22 pm
@starboard. Who do you think funded Bob Parkers election and who do you think is funding it this time. The buyback of the first building is now overdue but “apparently” the agreement is in place and they are waiting for title to be issued, well excuse me how on earth is there no title. Conveniently it will be out after the council elections. Good to see NZ still maintaining its place as the 2nd least corrupt country in the world and full marks to The Press for missing this completely.
Vote:April 24th, 2010 at 8:10 pm
Lesson I learnt many years ago.
The man who has to show he has got lots of money to splash around, ain’t got much money to splash around.
Vote:April 24th, 2010 at 8:17 pm
Mr Serepisos has given a huge amount to the Phoenix.
Vote:Beware a Greek bearing gifts!.
Last Wednesday was the 43rd anniversary of the Greeks’ “Day of the Phoenix”. The day Papadopoulos and his heinous mates brought in the rule of the colonels. Rather than rise from the ashes Greece descended into a mire of dictatorial mess. It makes one think that if the IMF are too tough on the Greeks a similar dreadful regime could arise in that country.
April 24th, 2010 at 8:56 pm
I only know Serepisos from watching Apprentice NZ. And it is nearly unwatchable. Honestly, is somebody just off camera holding cue cards for him to read?
I have not seen any evidence in that show at all the Serepisos knows anything about business – which is not the same as real estate. He actually comes across as not understanding what he’s looking for in the participants. They are getting fired for things that aren’t really anything to do with business skills.
My 2 cents. I can recommend Apprentice UK. Alan Sugar comes across as one very smart cookie.
Bob Jones would have been good in the NZ version.
Vote:April 24th, 2010 at 9:31 pm
Agree Ben, watching him in the show is a joke, he looks like a complete try hard………
Vote:April 24th, 2010 at 10:12 pm
“along with all the other ratepayers who do pay our rates.”
Ahh yes…all the more reason to introduce a council or poll tax and do away with rates.
Why is it that only property owners have to pay for facilities that every person in the community uses?
Vote:April 24th, 2010 at 10:44 pm
I’m torn. As a football/Phoenix fan, we probably need him. As someone who is fighting to survive in business in a tough Wellington economy, i say this sod should sell some of his assests to pay his debts, like many owners of SMEs are doing right now to stay afloat
Vote:April 24th, 2010 at 10:52 pm
Considering that he is fairly well known around town as a perpetual non-payer of bills, this shouldn’t really come as a surprise to anyone.
Vote:April 24th, 2010 at 10:59 pm
I recall a story about Trump from Alana I think, in his last difficult period, saying he was walking down the street one day, pointed to a street person and said: “see that, he’s about $200 million richer than I am.” That was before he built Trump Tower.
Then I recall reading about Alan Hawkins who after he got out of prison started a drycleaning business amongst others, and was well on his way to re-becoming a millionaire just a few short years after regaining his freedom.
All it is, is attitude. Attitude is the reason why some people are crims and some people become rich and some people make it to the professional sports leagues. It’s attitude. I don’t have it, personally. Don’t care enough about money or security or whatever it is that makes a person driven in that direction. But those that do, you can’t keep them down, just like you can’t reform some crims. But I wish Mr Serepisos well. Good on him for his achievements. The existence of the Phoenix alone is more than most people ever achieve and I imagine he’s done a lot more besides. And he’s right, the Phoenix is a fantastic boon to Wgtn.
I don’t follow soccer, haven’t followed The Apprentice, and had never heard of him until today, but now that I know what you’ve done, well done so far Mr Serepisos. Thanks for enhancing my city, thanks for building things up, moving and shaking and please please please, keep it up.
Just don’t try moves like Fay and Richwhite did with the railways, but they were JAFAs so so far, things are OK there…
I
Vote:April 25th, 2010 at 4:32 am
Pongo (77) Says:
April 24th, 2010 at 7:22 pm
..yes me thinking there is something xtremely smelly eminating from Tuam St…a stench of ” fuck Tony they’re onto us”…”I know Bob , put out another one of those E-Can press releases…it’ll save us some time..I’ll get the shredder out”…bastards…
Vote:April 25th, 2010 at 8:05 am
He fits the pattern and probably thinks he is a mini Donald Trump who equally had financial problems. A very unappealing person. I do not think he can keep his apprentice commitments now. But it all fits and this revelation has probably lifted his rating with some people.
Vote:April 25th, 2010 at 9:02 am
This morning pertinent question.
BB
“along with all the other ratepayers who do pay our rates.”
Ahh yes…all the more reason to introduce a council or poll tax and do away with rates.
Why is it that only property owners have to pay for facilities that every person in the community uses?
Well becuase Phil Heatley won’t change it. I know cause I asked him as soon as he became Minister of housing.
Vote:April 25th, 2010 at 9:09 am
There would be little or no point in trying to cash up this fronter, as with most of these people, the entire empire will be funded on fresh air and other peoples money, he won’t have the price of a pot to piss in.
The only ones to get hurt out of this will be the little guys owed money for work done, the “Greasy Greek” will slide out from under the shit fight that ensues and will reappear to take on the world another day, it’s the tradespeople and small businesses that will take it up the arse.
As for the football team it’s nothing more than a smokescreen to show him up as “Mr Nice Guy”, the public s friend.
Right about now Mare Prendegast must be starting to quietly wish she had never met Serepisos , and when all the shit settles she might find Tim Barnett’s fagot friend has a better shot at the mayoralty than she does.
As the saying goes “If you lie down with dogs, you get up with fleas”
Vote:April 25th, 2010 at 9:52 am
I think Serepisos is a genuine & generous businessman. Whatever his problems with his business is upto him and not for us to bash him on the blogosphere. We should celebrate his achievements and not his cashflow problems.
Vote:April 25th, 2010 at 10:11 am
Yep without these risk takers nothing would ever be built. And the next property boom is about to start. It will be slow but already there are murmurings that there is not enough beds for next year. Rents will go up and property values will rise.
By 2012 we will be joining Aussie and Canada with increasing property prices.
Risk takers will be back and so will non bank lenders. Expect to see that before the end of this year. Its already underway.
http://www.propertytalk.com/forum/showthread.php?t=2738
http://www.propertytalk.com/forum/showthread.php?t=2738&page=84
Vote:April 25th, 2010 at 10:50 am
V2 – have to agree. Risk takers will always be around and will be backed by non bank lenders. And the non bank lenders will always get there money from that group of stupid ma and pa investors that will give them the money – despite whatever sort of nanny state regulations we have.
Improved disclosure we need, but it will only be used by the more astute investors to do even better. We can never protect ourselves from the stupid. Be they risk takers; or conservative investors looking for that additional 0.5% return.
Vote:April 25th, 2010 at 11:17 am
Serepisos is a risk taker and so are his investors.. to be an entrepreneur your not going to get rich on wages… your going to have to take risks… your investors contractors and tradespeople etc, can either take that risk with you.. or they can decide not to…. that is their choice… his under capitalised property developments and the Wellington Phoenix football franchise he owns are all very high risk… but it is not the Wellington councils risk… it is Serepisos and his investors risk.
Vote:April 25th, 2010 at 2:30 pm
To all of you applauding Terry as an “entrepeneur” and a”risk taker”, and as the last NBR rich list had his worth at about $140 million, why doesn’t he just put his ego aside temporarily and sell a few of his hard earned assets, pay his debts and put an end to the hassle and misery he has caused so many smaller business people around Wellington for many years? Can’t or won’t? I suspect none of you are owed money by him.
Vote:April 25th, 2010 at 2:40 pm
How you treat the little people is what you’re character is.
That said all ratepayers should be able to expect fair and equal treatment by the council officers they pay salaries for.
Vote:If that isn’t the case said officers should be fired. Corrupt practices are just that and must never be tolerated in a democracy.
April 25th, 2010 at 2:56 pm
It would be a great day when all the users of council services get treated equally with rate payers and pay their share of the rates.Not as it in currently with only 65% of the users of council services paying the rates.
Vote: