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

 

BDO cuts $18.5 mln deal over Capital + Merchant claim

BDO Spicers cuts $18.5 mln deal over Capital + Merchant claim

June 26 (BusinessDesk) – Audit firm BDO Spicers has agreed to an $18.5 million settlement of a claim against it from the liquidator of failed lender Capital + Merchant Finance.

The agreement is a full and final settlement of claims relating to the audits of the company’s 2006 and 2007 financial statements without an admission of liability on the part of auditor BDO, according to a statement by the Insolvency and Trustee Service, a business unit of the Ministry of Business Innovation and Employment. Capital + Merchant was placed into liquidation under the control of the Official Assignee in December 2009 after collapsing in 2007 owing some $167.1 million to about 7,500 investors.

In a statement of claim seeking unspecified damages plus interest and costs the Official Assignee argued BDO failed to ensure the company's accounts and prospectuses presented a true and fair view of its financial health and BDO denied the claim.

Three former directors of Capital + Merchant Finance were sentenced to prison terms in the Auckland High Court in 2012. Two were ordered to pay reparation totalling $160,000.

Receivers Grant Graham and Brendon Gibson of KordaMentha are suing Perpetual Trust, claiming the trustee breached its duty to Capital + Merchant investors.

(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: