Liquidators settle with Feltex directors
The liquidators of failed carpet company Feltex have settled a claim against its former directors.
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The liquidators of EXFTX (formerly Feltex Carpets) say they have entered into a “full and final” settlement of their claims against the company’s former directors.
The liquidators, John Whittfield and Peri Finnigan from McDonald Vague, were appointed in December 2006 and issued proceedings against Peter Hunter, Peter Thomas, Tim Saunders, Michael Feeney and John Hagen in 2009.
The claim, which was originally for about $40 million, argued failure to act in good faith and best interest of Feltex, failure to disclose to market, and reckless trading
In 2010 the District Court found, after a 15-day trial concerning related issues, that the “overwhelming evidence” was that the directors had conducted themselves at all times with “unimpeachable integrity.”
The court’s findings caused the liquidators to re-evaluate their claim, which was due to be heard in a trial starting next week in the Auckland High Court.
The liquidators and the directors have today reached a confidential settlement.
The liquidators say the settlement has been entered into with out any admission of liability by the directors and this is reflected in a “modest and pragmatic settlement reached on a costs saving basis.”
Niko Kloeten
Thu, 12 May 2011
Thu, 12 May 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Liquidators settle with Feltex directors
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