The news gets worse for Nathans Finance debenture holders
Investors in Nathans Finance may be in for tougher times ahead with the latest update on the failed finance company’s receivership flagging a “significant loss” for debenture holders.
Sunday, 9 May 2010
Receiver Colin McCloy of PricewaterhouseCoopers said the 7,082 debenture holders owed $174 million "face a significant loss," with further distributions "dependent on the outcome of a number of actions currently in progress, including legal claims against various parties."
"A number of these actions may result in the realisation of substantial funds which will have a material impact on further recoveries for secured debenture holders," he said in his sixth report on the Nathans receivership.
Investors have been paid 3.7 cents in the dollar to date, and McCloy removed his indication that they receive no more than 10% of their principal from his previous update.
Meanwhile Nathans Finance directors Mervyn Doolan, John Hotchin, Kenneth (Roger) Moses and Donald Young pleaded not guilty to charges laid against them by the Securities Commission.
The commission alleges Nathans' offer document misled investors about the risks of investing in the company, especially the risks of its related party lending.
It also alleges that the directors made untrue statements in the company's registered prospectus and investment statement of December 13, 2006.
The directors' trial will begin on March 14 next year.
They have requested a trial without a jury.
Commenting is closed
Find a Rate
10 July 2014
2 July 2014
25 June 2014
15 May 2014
14 May 2014
Cash PIE Rates
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2014. Tarawera Publishing Ltd. All Rights Reserved.