Steel & Tube mulls position as interim judgment finds in favour of Lewis Holdings

Friday 19th December 2014

Steel & Tube Holdings is considering its legal position after an interim judgment found in favour of Lewis Holdings' $1.75 million claim over a disputed lease contract.

In October, the Lower Hutt based company denied any legal responsibility for losses relating to a contract lease between former subsidiary Stube Industries, which was liquidated last year, and Lewis Holdings. The interim judgment found in favour of the plaintiff, but didn't award damages pending further evidence, Steel & Tube said in a brief statement.

Accounting firm McDonald Vague's Boris van Delden and Peri Finnigan were appointed replacement liquidators of Stube in July last year after the resignation of Stephen Tietjens and Peter Chatfield of Accru Smith Chilcott and applied to the High Court to pool the assets of Steel & Tube as one entity, according to their latest report. Lewis Holdings filed an application for directions in September last year, which the liquidators later joined as second plaintiffs.

The June liquidators' report said they had received creditor claims of $2.62 million relating to the lease obligation, including the present value of rental payments.

Shares of Steel & Tube were unchanged at $2.90 and have declined 6.4 percent since the start of the year.

BusinessDesk.co.nz

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