KEY POINTS:
The receivers of Five Star Consumer Finance are paying a further 5c in the dollar to secured debenture investors on August 15.
This is a second payment. Investors received 17.5c in the dollar on April 16.
Five Star Consumer Finance was placed into receivership in August with a loan book of around $65 million and owing some 2300 secured debenture creditors $54.4 million.
Receivers Richard Agnew and Anthony Boswell of PricewaterhouseCoopers had previously told investors to expect to receive between 20 and 25 per cent back and they did not lift the top end of that range.
The receivers have directed the company to file a civil action against directors and an alleged shadow, or de facto, director alleging breaches of duties and a statement of defence is expected to be filed on August 4.
It was too early to comment on the merits of, or likely outcome of, that claim, the receivers said.
Criminal charges have also been laid against three directors by the Companies Office.
The charges relate to securities being offered and allotted to members of the public without there being a registered prospectus, investment statement or trustee appointed.
The Securities Commission and Serious Fraud Office are conducting separate investigations into Five Star.
- NZPA
