Rockforte realisations for Crown now less than 5c
The $4 million government bailout of failed finance company Rockforte is likely to see less than $200,000 recovered to offset the Crown costs.
The $4 million government bailout of failed finance company Rockforte is likely to see less than $200,000 recovered to offset the Crown costs.
According to the latest six-month receivers report of Rockforte Finance by Denis Parsons and Katherine Kenealy of Indepth Forensic, likely recoveries have been slashed from the earlier estimate of 10c to less than 5c in the dollar.
Rockforte had 77 investors owed $3.25 million in debentures, but receivers also found other investors had put $610,000 into the company but these funds “appear to have been transferred to third parties without their consent.”
Under the terms of the Crown Retail Deposits Guarantee Scheme Treasury paid out a total of $3.87 million to investors
Receivers note that of the 318 loans made by the company, mainly secured over second-hand Japanese imported cars, more than 10% of the loan files could not be located. Nondisclosed related party loans totaling nearly $2 million were also uncovered.
Rockforte’s accounts also appear to have been massaged, with receivers reporting non-performing loans were regularly refinanced into new loans and then classed as a current liability, reducing impairment provisioning.
“In some instances this refinancing took placed immediately prior to receivership,” the receivers report says.
The Financial Markets Authority announced last week it had referred its investigation of Rockforte back to the Serious Fraud Office to prosecute.
“Officers form the Serious Fraud Office have reviewed all records held by the receivers and have made wider enquiries, however we are not aware of any charges being laid in this stage,” the reports says.
Receivers says they have launched High Court recovery proceedings against Rockforte directors Nigel O'Leary, John Garner and Colin Simpson. Mr Simpson was later adjudged bankrupt.
Matt Nippert
Tue, 20 Sep 2011
Tue, 20 Sep 2011
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Rockforte realisations for Crown now less than 5c
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