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Dominion Finance receivership nears end

Thursday 29th December 2011

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Dominion Finance Group, the failed finance company whose principals are facing theft charges, is nearing the end of its receivership with all but the lowest-quality properties yet to be realised.

Receivers Rod Pardington and Barry Jordan of Deloitte reiterated returns to debenture holders will be between 10 cents and 25 cents in the dollar, according to their seventh report, released on Dec. 23.

The 5,937 debenture holders had $176.9 million invested at the time of receivership.Dominion Finance went into receivership in 2008 and its associate, North South Finance, went into receivership in 2010.

Both were subsidiaries of NZX-listed Dominion Finance Holdings, which was placed in liquidation in 2009. The Dominion Finance Group receivers are to contest one final payment under a security sharing agreement with North South.

Total loan and security realisations are about $243 million, with about $187 million repaid to first mortgagees, the receivers say. They have approved security release of 346 properties, of which 246 have settled and the remainder defaulted.

“The majority of Dominion’s securities have now been realised, with only a relatively small number remaining,” Pardington and Jordan say. “The properties remaining to be realised are generally of lower quality than the loans realised to date and the receivers expect some difficulty in realising these properties with an acceptable return.”

Four people associated with collapsed Dominion Finance Group and North South Finance appeared in Auckland District Court today, with one subject to a non-publication order, the Serious Fraud Office said.Directors Terence Butler and Robert Whale, chief executive Paul Cropp and the person whose name was suppressed appeared in Auckland District Court on Oct. 27, facing 14 charges under the Crimes Act for theft by a person in a special relationship.It is alleged that between 2004 and 2008 they participated in unauthorised related party lending worth more than $20 million in breach of trust deeds.

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