Vestar investors encouraged to lay claims as creditors

Investor ginger group EUFA is encouraging Vestar investors to lay claims as creditors with the company’s liquidators.

EUFA organiser Suzanne Edmonds says an insolvency expert has advised them that investors could be considered creditors of the company.

Ms Edmonds says investors will be claiming for their investment losses via a ‘proof of debt’ form.

Vestar liquidator, Corporate Finance’s Andrew McKay, said the firm would probably have to take legal advice on how to deal with the claims.

NBR first reported back in May that Vestar suitor George Gould was looking to buy the assets, rather than the shares, of the company.

This meant any liabilities Vestar had incurred should remain with the leftover shell company, owned by Australian listed MFS – which, under the name Octaviar is now in administration.

Two legal experts told NBR at the time that if a "cashbox company" were wound down after asset sales via liquidation, the liquidators would assess any potential claims from clients and other creditors to the cash left in the company.

The liquidator would also assess whether the company's assets had been sold at a fair price.

Insolvency practitioner Rob Merlo said Vestar investors could still lodge claims with liquidators even if they were also proceeding in civil claims against a firm. “They do have a right to be able to make a claim,” he said.

The liquidator would then have to review each claim, he said. The issue could go to court if it came down to a question of deciding whether Vestar had been negligent.