Monday 21st December 2009 |
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Failed finance company Capital + Merchant Finance was been put into liquidation last week, leaving some 7,000 debenture holders with little chance of clawing back any of their losses.
The Official Assignee in Hamilton is reported to have been appointed liquidator. Capital + Merchant was one of the first finance companies to be put into receivership, and has completely collapsed owing some $167 million to investors.
In its latest report, receiver Grant Thornton, which acts for Fortress, said $20.9 million had been repaid to the main lender, though $2.5 million was still outstanding.
The August report expected Fortress would be paid in full, though it revised down the return to debenture holders to up to 2 cents in the dollar from an earlier prediction of between 14 and 59 cents.
“The only recoveries for debenture holders will be from any insurance claims and legal claims against various parties,” the report said. “The loan quality, the deteriorating property market and lack of alternative credit to facilitate refinancing options have had an adverse effect on our ability to recover outstanding loans and assets.”
KordaMentha was also appointed as a receiver to act on behalf of debenture holders by trustee Perpetual Trust.
Grant Thornton also raised concerns about “related party” transactions in its August report.
Businesswire.co.nz
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