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Because he’s now bankrupt he lost control of his side of a hearing at the High Court in Wellington which ended on Friday with a judge reserving her decision on The Vintage Aviator and a related trust’s claim for up to $4.2 million from DeMarco and his company. The company was put into liquidation this week. The Official Assignee, who is now in charge of DeMarco s estate, believes a WWII fighter plane, a Corsair, of unknown value, will be a prime asset to meet as yet unknown creditors’ claims. But the Official Assignee’s lawyer, Gareth Neil, admitted in court to having no idea how to go about selling a vintage plane.
DeMarco borrowed the money to buy shares in a company that owned two prized World War II fighter planes. But the Jackson trust was not repaid and, by 2016, with interest the debt had swollen to $1.1 million. To try to repay the loan, DeMarco diverted to his own company more than $2m from an Auckland aviation charity that was to buy three planes from The Vintage Aviator. He negotiated the sale of the three planes, but at a price inflated by a “secret commission” of $621,000.
Piers Fuller/Stuff
Eugene DeMarco was a production manager for The Vintage Aviator Ltd. (File photo)
An appeal was planned, DeMarco’s former lawyer indicated in court. DeMarco had wanted the bankruptcy case delayed while he appealed against the court decision on which it was based. The judge said at this stage there was no appeal, and if one was filed it would face a high hurdle”. The creditors had waited long enough, and shouldn’t have to wait to see if DeMarco could mount a challenge to the debts.
Ross Giblin/Stuff
Sir Peter Jackson and others have an outstanding civil claim against DeMarco. (File photo) There was evidence the creditors could repay the money if the judgment was reversed on appeal.