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

 


Settlement reached for Lombard (In Receivership) claims

News release - Text document:

Monday 24 January 2014

News release 

Settlement reached for Lombard (In Receivership) claims 

PwC Partners John Fisk and Colin McCloy as Receivers of Lombard Finance & Investments Limited (In Receivership) (Lombard) today have announced they have reached a settlement agreement with the Directors of Lombard, their insurers, and a third party for $10 million.   

The settlement relates to civil claims that were made by the Receivers against Lombard's Directors for alleged breach of directors' duties under the Companies Act 1993. 

Lombard was placed into Receivership on 10 April 2008. Since then, the Receivers have focused on recovery of the loan book, assisted the Financial Markets Authority in the criminal proceedings against the Directors, and have pursued their own claims against the Directors under the Companies Act. 

The Financial Markets Authority (FMA) has consented to the settlement and, as a condition of the agreement, will discontinue its own civil proceedings against the directors of Lombard. 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. 

Mr Fisk says, “The settlement will enable us in the near future to pay a further distribution of 9 cents in the dollar. Combined with the 13 cents already paid to date, this will bring overall recoveries for secured debenture investors to 22 cents, exceeding our previous upper estimated outcome of 20 cents.”   

With two remaining properties to deal with, the Receivers now estimate the final outcome for secured creditors to be around 25 cents in the dollar. 

Mr Fisk says, “It is pleasing to be able to complete one of the remaining significant issues in the Receivership, and to be in a position to make a distribution sooner than would have otherwise been the case. A key factor in the settlement decision was balancing the time, costs and risks associated with litigation when compared to the certain outcome today.” 

The Receivers will be writing to investors once the settlement funds have been received. 

-Ends-

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news