Feltex directors' may have court case heard this year

Tim Saunders and Peter Thomas are two of the people targeted by allegations of a misleading prospectus. Photos / Brett Phibbs, Richard Robinson

Feltex's five former directors, who face criminal charges, could have their case heard this year.

Lawyers for former chairman Tim Saunders and directors John Feeney, Peter Hunter, Peter Thomas and John Hagen appeared in the Auckland District Court this morning.

The Companies Office has laid criminal charges alleging that the carpet-maker's half-year accounts to December 2005 did not disclose that the publicly listed company was in breach of a loan agreement with the ANZ bank.

Lawyers for the five, David Cooper and Paul Davison, QC, asked Judge David Harvey to appoint a judge to manage the case.

Davison said the case would be defended and he was due to receive a "large package" of disclosure documents today.

He said the hearing would take two weeks. Davison said he was "keen to get a fixture" this year.

Saunders, Feeney, Hunter, Thomas and Hagen were excused from appearing in court this morning and have also been excused from the next call-over date on April 28.

Feltex went into receivership in September, 2006, before going into liquidation, leaving 8000 shareholders who had invested $254 million in a public float with worthless shares. About 700 workers lost their jobs, according to the National Distribution Union.

The five men are also facing civil action in the Auckland High Court.