Further payouts to North South debenture holders unlikely
North South Finance's debenture holders are unlikely to receive any more of their capital back.
Thursday, September 8th 2011, 6:37AM
by Jenny Ruth
The investors have already received 62 cents in the dollar in three distributions.
North South's receivers, Grant Graham and Brendon Gibson of KordaMentha, say there are seven remaining loans totaling $14.6 million on the company's books, one of which is being serviced and the other six have some form of recovery action being taken.
"This predominantly involves the sell down of the security in part or as a whole," the receivers say in their six-monthly report.
"In addition to the $31 million still owing to investors, two banks holding security stock are owed a total of $15 million," they say, adding there will be a shortfall to secured creditors.
Unsecured creditors, owed about $34,000 are unlikely to receive anything, and the receivers say they are unaware of any Inland Revenue Department debt.
North South, which was owned by Dominion Finance, went into moratorium in late 2008 and then into receivership in July 2010 after the now defunct Securities Commission laid civil and criminal charges against the directors.
The directors,Vance Arkinstall, Rick Bettle, Terry and Ann Butler, Paul Forsyth and Robert Barry Whale, have pleaded not guilty. The criminal charges, being pursued by the commission's successor, the Financial Markets Authority, carry a maximum five-year jail term or a fine of up to $300,000.
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