Some LDC investors likely to recoup investment in full - PWC
Receivers for troubled Nelson company LDC Finance bear better tidings than most, with unsecured investors expected to recoup up to 90 cents in the dollar and secured investors likely to be repaid in full.
Friday, October 12th 2007, 9:59AM
PricewaterhouseCoopers said early analysis indicated that 470 secured term investments totalling $12.39 million would receive payment in full, including interest, the Nelson Mail reported.The receivers estimated that those holding 731 unsecured term and on-call deposits totalling $9.1m would recoup between 70c and 90c in the dollar, but no interest payments.
The expected payout to investors was higher than in the receiverships of some other finance companies, such as Five Star, whose investors could get back as little as 26 percent to 40 percent of their money.
Of 1201 LDC investments, 1022 were from people in Nelson/Tasman, 20 from Marlborough, 46 from elsewhere in the South Island, 65 from the North Island, and 48 from overseas.
New information showed the company had $26.5m of total assets, and $21.9m of liabilities, the paper said.
LDC was one of 10 finance firms to collapse in 18 months owing more than $1.2 billion, seven of them failing within four months.
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