A $3.5M payment has settled legal action against Queenstown Lakes mayor Jim Boult and businessman Brent Mettrick.

A liquidator’s report completed by Ernst & Young Strategy and Transactions Limited confirmed the proceedings were settled and withdrawn.

“The settlement figure was not sufficient to allow any distribution to this liquidation and therefore there will be no distribution to unsecured creditors,” the liquidators report said.

Back in 2016 a case was lodged in the High Court in Christchurch seeking millions of dollars from Jim, a former director of Stonewood Homes in Christchurch, and former Stonewood founder and director Brent Mettrick. 

Stonewood Homes and its associated companies were placed into liquidation with about 110 houses still under construction and owing creditors tens of millions.

It was alleged both men continued trading while the companies were essentially insolvent, suggesting a breach of their duties as directors, claims which Jim has previously denied.

The report confirmed there was “no admission of wrongdoing” by the defendants.

Liquidators Rhys Cain and Rees Logan, of Ernst and Young, began investigating the company on behalf of creditors in April 2016 with the help of $1M from a company linked to local land developer Chris Meehan.

Continuing with the legal proceedings would not have resulted in any greater return for the companies in liquidation, the liquidator said. 

The portion of the settlement contributed by each paying party was confidential.

The mayor has declined to comment on the settlement.

PHOTO: Wānaka App