Capital + Merchant debenture holders may get just 8%
Debenture holders in Capital & Merchant Finance will recover no more than 8% of their investment in the failed firm, less than originally estimated, according to receivers Grant Thornton.
Friday, July 18th 2008, 1:06PM
by Jonathan Underhill
The possible return is a fraction of the 14% to 59% recovery rate the receivers first estimated. Grant Thornton was appointed receiver last November by Fortress Credit Corp. Out of 55 loans with a book value of NZ$182.6 million, some NZ$42.8 has been realized, with NZ$13.4 million repaid to Fortress.
The receivers also said they are concerned about the appropriateness of some company transactions and would continue to probe these along with agencies such as the Securities Commission. Capital + Merchant was a lender mainly for property and property development.
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