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

 


RAM Liquidation Must Work for Investors

Ross Asset Management Investors Group

23 November 2012: For immediate release.

MEDIA RELEASE – RAM Liquidation Must Work for Investors

The Ross Asset Management Investors Group is deeply concerned that it is now confirmed that there is very little money left in RAM (Ross Asset Management in receivership) for distribution to investors. Most of the investors were ordinary New Zealanders of limited means, and many have been left destitute by the failure of the company.

We are also aware that the High Court will probably put RAM into liquidation on Monday. This may start a process, which based on previous liquidations in this country, may involve extensive litigation and costs that absorb all the remaining investor’s funds, and leave investors with little or nothing.

We are calling for the work of liquidator to be put out to competitive tender, with the following provisos:

• That tenderers for the work be required to describe their liquidation methodology in advance; how they will control and minimise all costs to RAM investors, while maximising returns to RAM investors.

• This will include limiting the direct cost of the liquidator themselves and limiting the cost of litigation by the liquidator and by investors, especially if a voidable preference regime or similar is implemented. The methodology must be flexible to cater for a range of potential paths and outcomes.

• The successful tenderer is to be chosen on the combination of maximum returns to investors, least overall cost, and previous experience.

The available pool of funds from RAM is small and investors can only hope to get a part of their investments back. It is incumbent on the authorities to conduct this liquidation in a manner that does not allow what little is left to be devoured by fees and litigation.

RAM investors and all investors in New Zealand deserve an investment environment that works.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news