Court freezes Eric Watson’s multi-millions
Sir Owen Glenn vows battle to his last breath as he wins injunction against rival.
A bitter legal stoush between rich-listers Sir Owen Glenn and Eric Watson has culminated in court injunctions stopping Watson disposing of his assets in New Zealand and around the world. The stoush was over $250 million of Glenn’s investment funds that the High Court in London found Watson’s entities had obtained unlawfully in 2012-13. In September the London court ordered Watson to pay about $50m as an interim interest payment to Glenn's company Kea Investments and also to pay a first payment of $7.6m towards Glenn's legal costs. Glenn proclaimed he will not stop fighting until he gets all of his money back: ‘‘I will pursue him to the ends of the earth’’. A Watson trust has paid back the $250m, but the court has ordered Watson pay interest to Kea for having use of the money for four to five years. Watson, 59, who grew up in Christchurch, managed a Whitcoulls store and sold fax paper for Xerox before making his money, and clambering into the public eye. He previously owned the Warriors league team, was married to model Nicola Robinson for three years, and had a public brawl with actor Russell Crowe in a pub in London in 2002. Glenn, who is 78 and battling cancer, said from a market in Delhi, India, this week that Watson had failed to make both the interest payment and the legal costs payment. Nor had Watson complied with the court-ordered disclosure
of information about his assets and dealings, enabling Glenn’s lawyers to trace the earnings generated by the various portions of the $250m.
‘‘I’m not sure what the next [legal] step is but we have got orders freezing his assets in New Zealand, Britain and Hong Kong.’’
The orders or injunctions stop Watson’s interests from disposing or dealing with various assets held in New Zealand, the United Kingdom and Hong Kong without giving 14 days notice to Glenn’s lawyers in London.
Breaches of the injunctions are treated as contempt of court.
In a statement, Watson’s London lawyer said litigation with Glenn was continuing and Watson disputed being in breach of any court order and ‘‘looks forward to succeeding in his ongoing dispute with Owen Glenn’’.
Glenn said he was prepared to spend millions ensuring Watson paid the money ordered by the London court.
‘‘I’ve got no choice. Let them keep the money? I’ve been fighting for seven years. I paid a price for that with my cancer and my heart problems.
‘‘I don’t give up. I just want justice to follow through.’’
The injunctions are issued against Watson’s Zedra Asia Ltd, a Hong Kong company, and his New Zealand companies Cullen Group and Valley (NZ).
They curtail Zedra’s ability to sell its shares in the New Zealand companies and also prevent Cullen Group and Valley (NZ) disposing of any assets (to the value of about $94m) in the UK or elsewhere without notifying Glenn’s lawyers. Cullen Group owns lingerie company Bendon, which has ownership rights to Heidi Klum’s and Stella McCartney’s ranges of lingerie.
A further hearing on the injunctions is scheduled for November 12.
Cullen Group, of which Watson is a director, owns a number of subsidiaries including Cullen Investments which has interests in Bendon and, according to its website, farming assets in New Zealand and the United States.
Interests in property around the world and oil and gas assets in Texas make up an extensive portfolio, the website claims.
Zedra Asia is the only shareholder of the Cullen Group.
Watson appears to have sold most of his more well-known Auckland assets. He has in recent years sold his interests in a 33ha luxury estate at Karaka and in the Warriors franchise.
He is currently fighting Inland Revenue over $112m in claimed back taxes and is also involved in litigation in New York over Bendon, brought by a disappointed investor.
Glenn said his legal costs in the Watson proceedings came to around $50m but he was prepared for a ‘‘long fight’’ and to go after other parties.
He had got back the money his trust invested but ‘‘what about all the heartache and expense. How do I get that back’’.
The loss of the $250m for four to five years had limited his philanthropy and how he could help his family.
‘‘I still give all the time. Tens of millions each year,’’ he said.