Six-year Feltex receivership nears end as liquidator pursues suit

The end is in sight for the six-year-long receivership of failed Feltex Carpets, with remaining issues likely to be settled in the next two months.

Some $A116.95 million has been repaid to Australia & New Zealand Banking Group as at September 30, leaving a balance of $A2.55 million owed plus accrued interest, according to the latest receivers' report.

Including interest and costs, the lender is expected to be owed more than $A16 million, a separate liquidators' report in June says.

Feltex was put into receivership in September 2006 with unsustainable debt levels and after a share price collapse. All of its assets were sold to Australian rival Godfrey Hirst two months later.

In a report released to the Companies Office yesterday, Kerryn Downey of McGrath Nicol says the last remaining Godfrey Hirst retention issue is likely to be determined in the next two months.

Once finalised "we will be in a position to make a final repayment of the surplus funds to the general security agreement holder and retire as receivers and managers".

No funds are likely to be available to the liquidators to meet claims of unsecured creditors. EXFTX Ltd, as Feltex was renamed, had a cash balance to $430,433 as at September 21.

The sorry tale of Feltex is not about to end, however. Liquidators Iain McLennan and Peri Finnigan of McDonald Vague are pursuing a claim against accounting firm Ernst & Young, which audited Feltex's accounts. Those recovery proceedings may take time, they says.

"We have agreed a timetable and are working through discovery issues and have paid security for costs," they said in June. At that time, there were 614 unsecured creditors owed about $13.9 million.

Separately, 166 shareholders have lodged claims as unsecured creditors for about $6.3 million, related to shares bought in Feltex's initial public offering.

In September, the Court of Appeal reserved its decision in the fight to free up director indemnity insurance to cover the cost of defending claims in the Feltex class action.

Feltex's directors at the time of the IPO were Tim Saunders, Sam Magill, John Feeney, Craig Horrocks, Peter Hunter, Peter David and Joan Withers. They all subsequently resigned.

The other parties to the class suit include broking firms Credit Suisse, First NZ Capital and Forsyth Barr, which sold and promoted the offer.

(BusinessDesk)


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Heres hoping the dodgy brokers; glorified salesmen, are taken to task by the shareholders class action against him.

Its time white collar crime is exposed for what it is.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7005 0.0003 0.04%
AUD 0.9168 -0.0017 -0.19%
EUR 0.6098 -0.0004 -0.07%
GBP 0.4773 -0.0018 -0.38%
HKD 5.4351 0.0070 0.13%
JPY 74.6170 0.2660 0.36%

Commods

Commodity Price Change Time
Gold Index 1292.7 26.930 2016-04-29T00:
Oil Brent 47.4 0.530 2016-04-29T00:
Oil Nymex 45.9 -0.080 2016-04-29T00:
Silver Index 17.8 0.269 2016-04-29T00:

Indices

Symbol Open High Last %
NZX 50 6820.6 6820.6 6820.6 -0.42%
NASDAQ 4805.8 4807.9 4805.3 -0.62%
DAX 10091.2 10153.1 10039.0 0.91%
DJI 17813.1 17814.8 17830.8 -0.32%
FTSE 6322.4 6322.4 6322.4 -1.27%
HKSE 21215.2 21235.4 21388.0 -1.50%
NI225 16357.1 16357.1 16666.0 -3.11%

Most listened to

What's the story behind the story? Our special feature audio offers a mix of comment from journalists, experts and panel discussions.
  1. Jason Paris on Lightbox, and avoiding the 'race to the bottom'
  2. The idea Hilary Barry’s resignation will result in boardroom bloodshed is arrant nonsense, says NBR’s Nick Grant
  3. The Icehouse’s Andy Hamilton says GIVs should attract American billionaires like Julian Robertson
  4. Nevil Gibson discusses the spiralling descent of the Venezuelan economy in his latest Editor’s Insight
  5. Rob Hosking on what to expect from this week's unemployment data