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

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: