Payout for Strategic investors soon
Investors are in line for a small pay-out on the $400 million owed next month.
Strategic Finance investors, owed $400 million, will get a small payout from property sales soon.
Receiver John Fisk, from PwC, said in a progress update for investors that distributions will be made as soon as sales money comes in from some of the properties in the Pacific that Strategic funded. That was expected to happen in April.
"Two resorts in Rarotonga are now subject to unconditional contracts and we are awaiting the necessary regulatory approvals so these sales can settle - we estimate that settlement will occur in April," the update said.
Difficulties realising properties - particularly coastal and development ones - made it difficult to estimate the exact amount receivers could expect to see.
Strategic Finance, headed by former All Black Jock Hobbs, was one of the country’s largest finance company collapses, leaving $13,000 investors out of pocket when it fell into receivership in early 2010.
Receivers have estimated investors could see between 12%-26% of their outstanding principal returned. So far, receivers have paid out 7c in the dollar - which equates to $26 million in total.
The Financial Markets Authority is investigating Strategic and is yet to reveal what, if any, action it might take against its directors.
PwC is also investigating the affairs of Strategic to see what legal action, and against whom, could be available.
"Given the size and complexity of Strategic's affairs, this has taken some time to work through and we are working closely with our legal advisers to complete this process as quickly and efficiently as possible."
NBR staff
Mon, 12 Mar 2012
Mon, 12 Mar 2012
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Payout for Strategic investors soon
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