Failed finance co director's family to repay investors
Debenture investors in failed Kiwi Finance will be fully repaid the $1.2 million they are collectively owed - by the family of a former director.
The Financial Markets Authority says debenture investors in failed Kiwi Finance will be fully repaid the $1.2 million they are collectively owed - by the family of a former director.
In a statement, the FMA says the repayment covers all remaining principal owed to secured debenture investors, plus interest outstanding up until Kiwi Finance went into receivership in April 2008.
Three of Kiwi Finance's four former directors, Rodney Greensill, Chris Simkin and Barry Lambert, have undertaken not to act as managers of an issuer of debt securities for a period of five years. Rhys Greensill has undertaken not to act as a manager of an issuer of debt securities for a period of three years.
The Greensill family is paying all of the $1.2 million of reparation, which is reflected in the shorter period of Rhys Greensill's management undertaking.
FMA CEO Sean Hughes said the outcome was an excellent one for Kiwi Finance investors.
Mr Hughes said; "As signalled in our Enforcement Policy earlier this year we want to focus our resources on conduct that harms the function of open, transparent and efficient capital markets. In this instance full restitution of investors' funds, together with an enforceable undertaking from the Directors, is a good conclusion to the investigation and a strong outcome for Kiwi Finance investors."
NBR staff
Wed, 14 Dec 2011
Wed, 14 Dec 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Failed finance co director's family to repay investors
18266