New Zealand prosecutors revealed Friday that AC/DC drummer Phil Rudd's legal woes stem from a telephone call in which he allegedly threatened to kill a contractor and his daughter.

Rudd, 60, has denied charges of threatening to kill and drug possession laid after his arrest in the North Island coastal town of Tauranga on November 6 and is free on bail ahead of a case review scheduled for February 10. A brief summary of facts released by the Crown Solicitor's Office revealed details of the allegations against the Australian-born Rudd, who has lived in New Zealand since 1983.

"On the morning of September 26, 2014, the defendant telephoned the first complainant and threatened to kill him and his daughter, the second complainant," it said.

"This phone call is consistent with a phone call made by the defendant earlier that morning to a business associate in which the defendant spoke about what he wanted done to the first complainant."

It said the first complainant had been contracted to Rudd for three years at the time of the call. The court has suppressed the identity of the complainants in the case and the prosecutor's summary did not detail what prompted Rudd to allegedly make the call. The document alleged that when police raided Rudd's home they found 0.71 grams (0.025 ounces) of methamphetamine and 130 grams (4.5 ounces) of cannabis.

"The defendant was interviewed by police and denied threatening to kill the first complainant or anybody and denied making any of the phone calls alleged," it said. Rudd was back in court this week after reportedly becoming involved in a scuffle on a Tauranga street with someone connected to the case, resulting in a judge tightening his bail conditions to include a specific restriction on the taking of illegal drugs.

He was originally also charged with "attempting to procure murder" but it was dropped after prosecutors examined police files and decided there was insufficient evidence to proceed.

Threatening to kill carries a potential jail term of seven years under New Zealand law. Methamphetamine possession can result in a six-month sentence and cannabis possession three months. AC/DC, one of the world's top selling bands, this week released their latest studio album "Rock or Bust". The case against Rudd has cast doubt on whether he will stay with the band, who are planning a world tour to promote the album.