tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, August 12th, 9:48PM

Investments

rss
Latest Headlines

Equitable investors facing a shortfall: receivers

Equitable Mortgages' investors not covered by the government guarantee and the government are unlikely to by paid all they're owed and unsecured creditors owed about $25 million are unlikely to receive anything.

Thursday, August 18th 2011, 10:47AM

by Jenny Ruth

Receivers Grant Graham and Brendon Gibson of KordaMentha says in their second statutory report Equitable had $188.4 million in loans outstanding when it went into receivership on November 29 last year.

"It will not be possible to recover the full amount outstanding but the receivers are yet to confirm what portion can be collected," they say.

Equitable had about 6,000 depositors with $192.3 million invested in debt securities and about $178 million was covered by the guarantee.

Treasury spokesman Angus Barclay says 88.6%, or about $158 million, of the latter has been repaid to investors. The remaining investors need to contact Treasury and make a claim, Barclay says.

After the date of the report, which showed the receivers were holding $37.4 million in cash at June 18, they repaid $35 million to investors and the government.

The receivers say they haven't yet received a claim from the Inland Revenue Department which is likely to increase the level of unsecured claims.

"Based on our preliminary estimates, we believe it is extremely unlikely there will be a return to unsecured creditors and we expect there to be a shortfall owing to investors and the Crown," the receivers say.

Their report shows they received $32.5 million in cash on appointment and collections since, including $6.2 million in loan repayments and $1.7 million in interest payments, took total receipts to $41 million at June 18.

Cash outflows to June 18, including $0.7 million in payments to the receivers and $1.4 million in loan advances, totalled $3.6 million to June 18.

« Former Hanover debenture holders face massive dilutionHeartland delivers on profit promise »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 1.00  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • It starts with governance
    “@Adviser1 this is part of the discussion we need to have as an industry. It is also part of the message we have with the...”
    9 hours ago by JPHale
  • It starts with governance
    “Thanks Gavin, appreciate your comments. So by engaging a compliance consultant and having the necessary policies, procedures...”
    11 hours ago by Adviser1
  • It starts with governance
    “Hi Adviser 1 -I don't think peer review will cut the mustard. There is more to it than someone having a look at you do and...”
    1 day ago by gavin austin adviser business compliance
  • It starts with governance
    “Who offers a governance solution for a one man adviser business or is adviser peer review the way to go? Cheers...”
    1 day ago by Adviser1
  • It starts with governance
    “Well said as usual Russell, you’re right governance is one of the things that has been missing from the discussion and...”
    2 days ago by JPHale
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com