Liquidators zero in on Strategic Finance transactions
[Updated: 2.30pm] Liquidators of Strategic Finance say they have identified a number of transactions that require further investigation and are pursuing possible avenues of recovery.
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Liquidators of Strategic Finance say they have identified a number of transactions that require further investigation and are pursuing possible avenues of recovery.
In their most recent report Andy McKay and John Cregten of Corporate Finance said they were working with Strategic’s receivers in relation to investigations into the finance company’s books.
Mr McKay said it was not practical to estimate the date of completion of the liquidation as it depended on what action was taken regarding the transactions.
"There’s a few transactions we’ve identified between ourselves and the receiver and we’re working through a process, gathering documents and trying to work out what our view of the world is," he told NBR.
While he couldn't provide further details on the transactions being looked at, Mr McKay indicated there were sizeable amounts of money involved.
"We’re not doing it for a few hundred thousand."
Despite the extra power liquidators have to look back over past transactions, the process would take some time, he said.
"We’re talking about sourcing documents going back a year and a half ago, or two years ago when the transactions happened. That’s the constraint, its not people trying to avoid us."
Strategic was placed in receivership in March 2010 after being unable to make moratorium repayments to 10,000 investors owed $368 million.
In a recent letter to investors, receiver John Fisk of PricewaterhouseCoopers said he had been assisting the Securities Commission in its probe into the lender.
The receiver had found “several transactions undertaken during the December 2007 to August 2008 period which we consider warrant further investigation.”
The receivers’ latest estimate of recovery is between 12c and 35c in the dollar for investors. So far investors have received a first payment of 2c in the dollar, a total of $7.4 million.
“There are still considerable uncertainties relating to the recoverability of the property loans which will have an impact on the final recoveries that we will be able to achieve for secured debenture holders,” Mr Fisk wrote.
Strategic was headed by former Hanover chief executive Kerry Finnigan. Other directors include, Jock Hobbs, Graham Jackson, Marc Lindale, Denis Thom and David Wolfenden.
Duncan Bridgeman
Mon, 21 Feb 2011
Mon, 21 Feb 2011
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Liquidators zero in on Strategic Finance transactions
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