Forsyth Barr intends opting in Feltex clients
Feltex collapsed in 2006, wiping out shareholder investments of about $250 million just 21 months after it floated on the stock exchange.
Some clients of broker Forsyth Barr are being automatically opted in to the Feltex class action through a nominee company.
Feltex collapsed in 2006, wiping out shareholder investments of about $250 million just 21 months after it floated on the stock exchange.
Former shareholder Eric Houghton is mounting a civil case on behalf of investors against Feltex’s former directors, two broking firms, First NZ Capital and Forsyth Barr, and the promoter and vendor, Credit Suisse Private Equity and Credit Suisse First Boston Asian Merchant Partners.
Feltex's directors at the time of the offer were Tim Saunders, Sam Magill, John Feeney, Craig Horrocks, Peter Hunter, Peter David and Joan Withers.
So far about 3000 former shareholders have joined the claim and Mr Houghton’s lawyer, Austin Forbes QC, says final opt in for qualifying shareholders closes this Thursday.
In the last few days some opt in forms have started coming in from clients of the fifth defendant, Forsyth Barr, Mr Forbes says.
Forsyth Barr has written to those 2004 clients because in many cases their investment in shares in the Feltex float was first registered into the name of their nominee company, Forsyth Barr Custodians Limited.
As a result Mr Houghton has not been able to contact these potential claimants directly to offer representation.
Mr Houghton's solicitors, Wilson McKay, have been told by lawyers for Forsyth Barr that it is intending to opt in any Forsyth Barr Custodian managed clients who invested in June 2004, Mr Forbes says.
Any qualifying shareholder opted in by Forsyth Barr Custodians can opt out by June 21, 2013, and be excluded from the final claimant group to be filed with the High Court.
Duncan Bridgeman
Tue, 28 May 2013
Tue, 28 May 2013
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Forsyth Barr intends opting in Feltex clients
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