Ross Asset Management in liquidation
Failed investment firm Ross Asset Management (RAM) has been put into liquidation, with its receivers John Fisk and David Bridgman of PwC appointed as liquidators.
Thursday, December 6th 2012, 12:12AM
by Niko Kloeten
The order placing RAM into liquidation was made in the High Court in Wellington today and included related companies Bevis Marks Corporation, McIntosh Asset Management and Mercury Asset Management, all of which are in receivership.
The court was advised shareholder resolutions are to be passed today to appoint Fisk and Bridgman as liquidators to four more Ross companies in receivership: Dagger Nominees, Ross Investment Management, Ross Unit Trust Management and United Asset Management.
The first liquidators’ statutory report for all of the above companies will be produced and posted to investors later this week.
Fisk said their appointment as liquidators gives them greater powers to investigate complex transactions and issues, and to distribute assets, which they did not have as receivers.
“Given the significant shortfall in assets available to investors at present, we need to be mindful that whatever actions are taken in this process are cost effective and recognise the difficult financial position many investors now find themselves in,” he said.
“There have been a number of comments in the media about significant liquidation and legal costs that may be incurred in recovering money from investors who received repayments from their portfolios within the last two years.
“The issues in this insolvency are very complex and involve difficult areas of law and ones that we have not formed a final view on.”
Fisk said it would be “premature” to assume anything at this stage in regards to third party recoveries as further investigation and legal advice is required.
“Any decisions on pursuing third party recoveries will be considered against the costs, risks and benefits of the potential claims. The last thing we want is for investors to get ahead of themselves by incurring additional legal costs or expecting great recoveries from this source. ”
RAM investor group spokesman Bruce Tichbon said some investors who had received pay-outs from Ross were getting ready for a possible legal battle over the funds.
“People have got their BMWs driving around Taupo and they’re lawyering up because they know there’s a claw-back regime coming.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
| « Ross investors claim FMA ‘conflict of interest’ | Fund managers call for level playing field » |
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