North South investors get better deal in $10m Dominion Finance settlement

Dominion Finance director Ann Butler at a 2013 High Court appearance. Photo: Richard Robinson.

North South Finance investors get a better deal in the $10.24 million settlement with its board and the directors of Dominion Finance.

Almost $7 million will be distributed to the receivers of North South following the settlement, announced yesterday.

North South Investors, who have received 65c back in the dollar so far, were owed $31 million when the company went into receivership in 2010.

Dominion Finance have got back far less - only 13.5c in the dollar of the almost $177 million they were owed when the company went under.

Dominion Finance's liquidators will get $3.34 million for distribution for investors following yesterday's deal.

The final amount which investors will get, however, is not clear and will follow items like fees and GST being deducted.

Settlement talks with the directors involved Dominion Finance's liquidators, North South Finance's receivers and the Financial Markets Authority.

The FMA, which had initiated action against DFG and NSF directors Terry and Ann Butler, Robert Whale, Richard Bettle, Paul Forsyth and Vance Arkinstall, said as a result of the deal it will drop its proceedings.

"The directors of the collapsed finance companies failed to perform their roles as directors and did not take adequate steps to ensure they were aware of the company's true position," the FMA said in announcing the settlement yesterday.

Ann Butler, Whale, Bettle, Forsyth and Arkinstall were all convicted in 2013 for making untrue statements in offer documents and received varying sentences of home detention and community work.

The FMA would not say who paid what in the settlement.