Shell of failed carpetmaker Feltex put into liquidation

By NZPA

Thursday 14th December 2006

The shell of the failed carpet maker Feltex was officially put into liquidation by the High Court at Auckland yesterday after an application by the Shareholders Association, The New Zealand Herald reported today.

The association wanted to move to liquidation so it could try to have the ex-directors banned by the Ministry of Economic Development from other boards for up to five years and set up a fund to investigate possible litigation.

Chairman Tim Saunders and directors Michael Feeney, John Hagen and David Hunter resigned on October 19, while former chief executive Peter Thomas, who was also a director, resigned when receivers were appointed on September 22.

The sale of Feltex assets and operations to Godfrey Hirst was completed this month and the company renamed EXFTX.

The proceedings also revealed that the sale to Godfrey Hirst did not realise enough money to pay out Feltex's bank, Shareholders Association director of advocacy Ross Dillon said.

Receiver Colin Nicol confirmed that a "small amount" remained unpaid to ANZ but he did not think it was of great relevance to yesterday's liquidation order.

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