Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Feltex Court Action Set To Continue, Lawyer Says

Feltex Court Action Set To Continue, Lawyer Says

LAWFUEL – NZ Law Jobs & Legal Newswire - Litigation on behalf of investors in failed carpetmaker Feltex is set to continue, with Christchurch lawyers finalising due diligence on funding for the litigation.

Potential claimants' lawyer Gary Wakefield told LawFuel that his firm was in the final stages of completing due diligence with an Australian-based litigation financier. The financiers would take a percentage of any litigation success. No lenders in New Zealand presently provide litigation funding of the kind sought by Mr Wakefield in the Feltex claim.

Feltex was floated on the sharemarket at $1.70 a share in 2004 and last September was put into receivership. It was sold in October to Australian carpetmaker Godfrey Hirst as a going concern, with the purchase price sufficient to repay Feltex's bank facilities.

Thousands of small shareholders lost over $250 million - an average of $29,400 each - when the shares became worthless. Mr Wakefield's firm represents over 650 shareholders.

The lawsuit will seek as much as $250 million from directors, vendors, issuers and promoters involved in the public float of Feltex.

Credit Suisse First Boston bought Feltex in 1996 for $19.5 million, then sold it to a related private equity firm, CSFB Asian Merchant Partners which then floated it.

The float was lead-managed by First NZ Capital, which has always had close ties to CSFB, and Forsyth Barr, and co-managed by ABN Amro and Macquarie Equities.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news