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

 


Lombard receivers reach deal with ex-directors, 3rd party

Lombard receivers reach $10M settlement with former directors, insurers and third party

Feb. 24 (BusinessDesk) – The receivers of failed finance company Lombard Finance & Investments say they’ve reached a $10 million settlement with former directors, their insurers and a third party over civil claims of breach of duty.

The settlement will allow receivers John Fisk and Colin McCloy of PwC to make a further 9 cent distribution to Lombard’s secured debenture holders, bringing total paid out to 22 cents in the dollar, exceeding their estimate of a maximum 20 cents in the dollar. With the sale of two remaining properties, the total payment is now forecast to be about 25 cents.

The 4,400 Lombard Finance investors were owed $127 million at the time of the receivership in April 2008. Since then, former Justice Ministers Doug Graham and Bill Jeffries, former PR man for the Queen Lawrie Bryant and Lombard’s ex-boss Michael Reeves have been convicted of making false statements. They avoided jail but are awaiting the outcome of an appeal against their sentences.

As part of the settlement, the Financial Markets Authority, which pursued criminal proceedings against the four, has agreed to discontinue its own civil claims against the directors under the Companies Act. Neither the third party nor the insurers were identified.

The FMA “is of the view that the PwC settlement represents the best outcome for Lombard investors, and that given it had limited prospects of achieving any better recovery through its own claim, it was in the public interest to consent to the settlement and discontinue its claim,” according to the PwC statement today.

“A key factor in the settlement decision was balancing the time, costs and risks associated with litigation when compared to the certain outcome today,” Fisk said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news