Deloittes to go after valuer in Dominion Finance fiasco
Dominion Finance receiver Deloitte is preparing to lay claims against a valuations company as well as Dominion’s own directors and officers, their latest letter to investors states.
The un-named valuations company is now in liquidation and Deloitte has notified the liquidator that it will be laying a claim with the company.
Deloitte partner Rod Pardington confirms that this relates to allegedly incorrect valuations rather than debts owed to Dominion.
The company was responsible for valuations on nine significant Dominion loans to two developers.
Deloitte’s last report noted that many valuations on Dominion’s mortgage files were out of date.
Deloitte has estimated it will recover between 10-25% of the $224 million owed to Dominion debenture investors.
But this does not include potential returns from claims including to the valuations company, against directors and from liquidation.
Dominion’s trustee Perpetual has petitioned to put the company in liquidation. Liquidators have powers to overturn some transactions completed within a certain timeframe before failure.
Mr Pardington says investigations will be made into whether dividends paid to Dominion shareholders can be reclaimed.
As well, specific related-party transactions may be challenged. Deloitte’s investigations have found deals involving significant amounts of money with related parties.
Deloitte has copped flak from some borrowers and other lenders, “who do not share our concern for the level of recovery achieved by Dominion,” over its handling of certain projects, the latest letter outlines.
The criticism generally relates to enforcement actions it has taken, Mr Pardington says.
“When you’re pursuing Dominion investors’ interests, your objectives are generally not consistent with the objectives of borrowers.”