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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news