Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


$18.5 million settlement for Capital + Merchant Finance

Media release

26 June 2014: 2.00pm

$18.5 million settlement for Capital + Merchant Finance

The Insolvency and Trustee Service (a business unit within the Ministry of Business Innovation and Employment) today announced it has successfully finalised a settlement agreement for $18.5 million.

The settlement represents a full and final settlement of all claims by the liquidator of Capital + Merchant Finance against BDO Spicers (the previous auditors) arising out of the audits of Capital + Merchant Finance's financial statements for the years ended 31 March 2006 and 31 March 2007. It is made without any admission of liability on the part of BDO Spicers.

Les Currie Official Assignee at Hamilton and liquidator of Capital + Merchant Finance Limited (In Receivership and In Liquidation) says the agreement with BDO Spicers settles a long standing civil claim as instigated by the liquidator. The settlement was reached after assessment of the risks and benefits of litigation and the associated costs.

“This milestone represents a significant settlement in this matter for the ultimate benefit of the investors in the company - several thousand public investors who purchased secured debenture notes”.

“It was achieved after rigorous negotiations and consultation. My team of insolvency personnel, experts, and legal counsel have all worked diligently to ensure the best possible outcome for the company and its investors,” says Mr Currie.

[ends]

Background:

Capital + Merchant Finance Limited was placed into receivership on 23 November 2007 with the appointment of Timothy Downes and Richard Simpson of Grant Thornton as Receivers. A second receivership also commenced on 29 November 2007 with the appointment of Grant Graham and Brendon Gibson of Korda Mentha as Receivers. The first receivership was concluded on 21 March

2012 and the second receivership continues. The Official Assignee was appointed liquidator of the company on 15 December 2009 on the petition of the Registrar of Companies.

Three former directors of C+M (Nicholls, Douglas and Tallentire) were convicted of offences under the Crimes Act and the Securities Act as a result of prosecutions by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA). They received total prison sentences of between six and eight and a half years’ imprisonment. Two of the directors (Ryan and Sutherland) were ordered to pay reparation totaling $160,000.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Salvation Army On Homelessness: Hard Times In West Auckland

The report details an uncomfortable story of people whose only option is to live an unhealthy, dangerous and damaging street life... The social housing needed by these people is not currently available in sufficient quantity. More social housing is required in the West. More>>

ALSO:

Message For PM: NZ Supports Te Reo Māori – You Should Too

As Māori Language Week celebrations and commemoration of 40 years draws to an end, the Māori Language Commission, Te Taura Whiri i te Reo Māori, is once again hugely encouraged by the widespread support for Māori language from throughout the country ... More>>

ALSO:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
More RSS  RSS News AlertsNews Alerts
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news