Liquidators join receivers at Dominion Finance
Dominion Finance Group has been placed in liquidation by the High Court at Auckland today.
Associate Judge Faire appointed William Black and Andrew Grenfell of McGrathNicol liquidators of the firm.
Perpetual Trust applied to put the company in liquidation, following its receivership last September.
Creditor BOS International (Australia) had lodged a stay against the application for liquidation but withdrew this on the proviso that McGrathNicol were appointed to the role.
Dominion Finance receiver Deloitte has estimated it will recover between 10-25% of the $224 million owed to Dominion debenture investors – not including potential returns from the liquidation or other court action.
Liquidators have greater powers than receivers to overturn transactions made within a certain time before the company failed.
Deloitte has said that 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.