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

 


Feltex receivership coming to end as liquidator pursues suit

Six-year receivership of Feltex coming to end as liquidator pursues suit

Nov. 21 (BusinessDesk) – The end is in sight for the six-year-long receivership of failed carpet maker Feltex Carpets, with remaining issues likely to be settled in the next two months.

Some A$116.95 million has been repaid to Australia & New Zealand Banking Group as at Sept. 30, leaving a balance of A$2.55 million owed plus accrued interest, according to the latest receivers’ report. Including interest and costs, the lender is expected to be owed more than A$16 million, according to a separate liquidators’ report in June.

Feltex was put into receivership in September 2006 with unsustainable debt levels and following a share price collapse. All of its assets were sold to Australian rival Godfrey Hirst two months later.

In a report released to the Companies Office yesterday, Kerryn Downey of McGrath Nicol said the last remaining Godfrey Hirst retention issue is likely to be determined in the next two months. Once finalised “we will be in a position to make a final repayment of the surplus funds to the general security agreement holder and retire as receivers and managers,” Downey said.

No funds are likely to be available to the liquidators to meet claims of unsecured creditors. EXFTX Ltd, as Feltex was renamed, had a cash balance to $430,433 as at Sept. 21.

The sorry tale of Feltex isn’t about to end, however. Liquidators Iain McLennan and Peri Finnigan of McDonald Vague are pursuing a claim against accounting firm Ernst & Young, which audited Feltex’s accounts. Those recovery proceedings may take time, they said.

“We have agreed a timetable and are working through discovery issues, and have paid security for costs,” they said in June. At that time there were 614 unsecured creditors owed about $13.9 million.

Separately, 166 shareholders have lodged claims as unsecured creditors for about $6.3 million, related to shares purchased in Feltex’s initial public offering.

In September, the Court of Appeal reserved its decision in the fight to free up director indemnity insurance to cover the cost of defending claims in the Feltex class action.

Feltex's directors at the time of the IPO were Tim Saunders, Sam Magill, John Feeney, Craig Horrocks, Peter Hunter, Peter David and Joan Withers. They all subsequently resigned. The other parties to the class suit include broking firms Credit Suisse, First NZ Capital, and Forsyth Barr, who sold and promoted the offer.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news