Update on Receivership of National Finance 2000
Thursday 25 May 2006
Update on Receivership of National Finance 2000 Ltd
PricewaterhouseCoopers partners Colin McCloy and John Waller, appointed as receivers to National Finance 2000 Ltd (NFL) on 9 May 2006, advised today that a small number of investors’ deposits (plus interest) will be returned in full later this week.
These investors have previously been written to by NFL and advised that their funds were being held in a solicitor’s trust account because at the time their funds were received the company was unable to issue debenture stock. This was because NFL’s registered prospectus did not comply with the Securities Act 1978.
Colin McCloy said a total of approximately $750,000 was received from 92 investors and held in the solicitor’s trust account. “As receivers we have assumed control of the account, and we will be returning the money to the relevant investors later this week.”
He said the position of the company was becoming clearer. “In the interim the receivers are finalising their analysis of NFL’s loan book and we expect to be in a position to write to the remaining 2026 investors - who invested approximately $25.5m - next week with an initial view of potential recoveries to investors.”