Bankruptcy proceedings brought against his former business partner, Rodney Humphries, by Maniototo farmer Ewan Carr over claims of a $238,000 debt were settled on confidential terms in the High Court at Dunedin this week.
Mr Carr and Mr Humphries have had ongoing legal battles for several years about ownership of assets and debts relating to the Big Sky Dairy Farm project near Patearoa.
Big Sky has been in receivership since March 2007.
In July last year, the Otago Trustee Company Ltd, which administers the estate of the late Howard Paterson, one of the original partners in the Big Sky dairy syndicate, filed separate bankruptcy applications against the two men.
It claimed a $269,000 debt against Mr Carr and $290,000 against Mr Humphries.
This week's application resulted from the taking over by Mr Carr of the historic debts which were originally held by UDC Finance then assigned to Otago Trustee.
Lawyers Jai Moss, of Christchurch (Mr Carr), and Andrew Gilchrist, of Auckland (Mr Humphries), were in court on Tuesday to argue the case and the hearing, before Associate Judge Osborne, was expected to take a good part of the day.
But before submissions from either counsel, the judge suggested both lawyers have discussions with their respective clients to see if any agreement was possible.
He was "fully prepared" to hear the case, he said, but it was likely to be up to two months before his written decision would be available.
And the unsuccessful parties would then have rights of appeal which would mean continued costs being incurred by both sides.
That concerned him, Judge Osborne said.
By the middle of the day, counsel returned to the courtroom and told the judge the parties had agreed on a settlement.
The terms of the agreement were detailed to the court but, at the request of both counsel, are to remain confidential.
The case was then adjourned by consent to June 8 for settlement to be effected.
If "as anticipated", settlement was achieved before that date, an application could be made to the court for the bankruptcy application to be withdrawn by leave, Judge Osborne said.
