KordaMentha concludes receivership of Somers-Edgar's Orange
KordaMentha concludes receivership of Somers-Edgar's Orange Finance with $10M shortfall
By Jonathan Underhill
June 30 (BusinessDesk) - The receivers for
Doug Somers-Edgar's Orange Finance have concluded their work
with a shortfall of about $10 million in principal and
interest owed to debenture holders of the failed
company.
Orange froze repayments to some 2,500
investors owed $25.6 million in late 2008 before convincing
debenture holders to agree to a moratorium on redemptions
and interest payments until the end of July 2011. That
deadline was later pushed out another year with trustee
Covenant Trustee's approval.
Covenant appointed Brendon Gibson and Grant Graham of KordaMentha as receivers after Orange managed to repay 72 cents in the dollar during its 3 1/2-year moratorium on interest payments. By the end of the receivership, the repayment has climbed to 84 cents in the dollar.
"Given there are no further assets to realise
there will be a shortfall to debenture holders," the
receivers say. The final payment made was $45,400 paid to
the trustee in relation to distributions owed to debenture
holders who hadn't been tracked down or had failed to
respond to notices from the receivers.
Orange had been
incorporated in 2003 and funded property development and
investment loans from funds raised from the public via the
issue of debentures. Orange had no employees or
infrastructure and was operated by Matrix Funding Group,
which changed its name to Waiwera Canyon in June 2014 and is
still owned by Somers-Edgar and his wife Anne.
Some investors complained they had been encouraged to put their money into Orange by advisory firm Money Managers, a Somers-Edgar vehicle that has since been struck off the register of companies.
Somers-Edgar is associated with
two other companies that are at risk of being struck off -
Ginsing Growers and EFT Management, which is overdue filing
its annual return. Another, CTT Finance Holdings, is in
receivership, while Heritage Trust is in
liquidation.
A Companies Office search on the name
Somers-Edgar as a director or shareholder brings up pages of
companies where he has ceased involvement but also 12 or
more that are apparently still active, including a stake in
IT firm Flow Software, Onesure Life & Health, Workplace
Superannuation, Paramount Management, Munford & Sons, Oracle
Insurance and Club
Finance.
(BusinessDesk)