Dominion Finance High Court trials set for Feb. 11, June 17 next year
Aug. 20 (BusinessDesk) - The High Court trials of the directors of failed finance company Dominion Finance Holdings and its subsidiaries are set down for Feb. 11 and June 17 next year, according to the eighth liquidator’s report.
Directors Terence Maxwell, Robert Whale, former chief executive Paul Cropp and a fourth person who has name suppression, face a total of 14 counts of theft by a person in a special relationship following an investigation by the Serious Fraud Office. That trial is set for February.
The Financial Markets Authority has separately completed its probe into the Dominion Finance group, including subsidiary North South Finance. Criminal charges have been laid and civil proceedings issued against the directors with the trial set for June.
The report from John Cregten and Andrew McKay of Auckland-based Corporate Finance, reiterates that the primary asset realisation has been the transfer/sale of tax losses from North South Finance, which will be free from potential clawback claims in 2013, and $80,000 unlocked from subsidiary WC Acquisitions. No further assets of value are expected to be recovered.
The sale of tax losses is listed at $353,505 in the liquidators’ cash book for the period Feb. 2, 2009, to Aug. 16 this year. Net cash available is $325,881 after payments including liquidators’ fees of $95,249.
Dominion Finance Group had 5,937 debenture holders with $176.9 million invested at the time of receivership in 2008. North South Finance was put in receivership in 2010. Both were subsidiaries of NZX-listed Dominion Finance Holdings, which was placed in liquidation in 2009.
It is alleged that between 2004 and 2008 the directors participated in unauthorised related party lending worth more than $20 million in breach of trust deeds.