KordaMentha was appointed joint receivers and managers of FEI by Trustees Executors on April 1.
Prior to the receivership, FEI had been working to recapitalise the company. It was unable to recapitalise by March 31.
Investors have $54.3 million with the company.
FEI wrote to Trustees Executors and the Reserve Bank of New Zealand to advise that it would breach its regulatory ratios and would stop making payments to depositors. This advice triggered an event of default under the trust deed.
As the supervisor of FEI, Trustees Executors exercised its enforcement rights and appointed a receiver.
Trustees Executors chief executive Ryan Bessemer, said: “Since late 2019 Trustees Executors has been liaising with the FMA and RBNZ whilst also engaging with FEI.
“The decision to appoint receivers is not related to the Covid-19 crisis, but obviously the current situation has not helped, and we agree with the FMA that this is terrible news for FEI’s investors.”
All payments of principal and interest to deposit holders have been suspended.
The receivers will shortly write to all known deposit holders advising them of the receivership and the likely next steps.
Further communication with deposit holders will likely be in May 2020, when the receivers will provide further information about FEI and the receivership.
Borrowers should continue to make regular repayments.
| « Warning for insurers | AML warnings issued » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved