IRD stalls Lombard distribution
Inland Revenue is making a preferential claim of up to $4.5 million over a GST payment before the receivership.
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The receivers of Lombard Finance & Investments say no further distributions will be made to secured debenture investors until a claim by Inland Revenue (IRD) is resolved.
Lombard collapsed in 2008, owing 4400 investors $127 million. The IRD has been carrying out a goods and services tax (GST) audit of Lombard since the start of the receivership.
As a result, the IRD has advised that it may have a preferential claim of up to $4.5 million in the receivership. The claim relates to the GST component of one specific transaction that occurred before receivership.
"We will be reviewing their claim to assess whether to accept it and whether the receivers consider it to be preferential or not," receiver PricewaterhouseCoopers says in a report.
Two interim distributions totalling 9.5c in the dollar have been paid to secured debenture investors because the IRD has waived any preferential claim.
The IRD has now advised that as a result of the outcome of its audit it is no longer in a position to agree to waive any preferential claim in respect of any further interim distributions.
This means that no further interim distributions to secured debenture investors will be made until IRD's potential preferential claim is resolved.
NZPA
Wed, 22 Dec 2010
Wed, 22 Dec 2010
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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IRD stalls Lombard distribution
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