Capital + Merchant investors’ only avenue for recovery through claims
The 7,500 investors owed $168 million by failed financier Capital + Merchant’s only avenue to get any money back will be through a claim against the directors or other parties involved prior to its collapse.
Wednesday, August 4th 2010, 11:16PM 
1 Comment
by Paul McBeth
Second receiver Grant Graham of KordaMentha said "it is likely the only potential recovery for investors" will be through this kind of action, in his latest six-monthly report.
Capital + Merchant Finance and Capital + Merchant Investments still owe prior ranked creditor Fortress Credit some $19.6 million of a total $61.4 million, and first receiver Richard Simpson and Tim Downes of Grant Thornton doubt the lender will be repaid in full, though they expect the $2.3 million owed by CMF will be repaid.
Grant Thornton estimates that if Fortress had equal ranking with debenture holders, investors would have received 26 cents in the dollar on their principal.
Capital + Merchant's directors face criminal charges from the Securities Commission over related party lending and loan management, though their case was rescheduled recently due to the sitting judge feeling unwell.
Grant Thornton said it is pursuing claims on the Lloyds insurance policy on eight loans, one of which has been rejected, though it cannot estimate how much it may recover.
Paul is a staff writer for Good Returns based in Wellington.
| « Receivers unsure how much govt will claw back from Rockforte Finance | SCF blames adviser for share price plunge » |
Special Offers
Comments from our readers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
what right I ask have they to have the good life while I am struggling on a pension.Hoping that they get just dues
and I get 26c in the dollar,. worse thing was having to pay tax on the interest that I did not receive - oh this is so wrong. But I am stilling smiling. good luck hope you win.