$18.5 million settlement for Capital + Merchant Finance
On: 26 July 2014
The Insolvency and Trustee Service (a business unit within the Ministry of Business, Innovation and Employment) today announced it has successfully finalised a settlement agreement for $18.5 million.
The settlement represents a full and final settlement of all claims by the liquidator of Capital + Merchant Finance against BDO Spicers (the previous auditors) arising out of the audits of Capital + Merchant Finance's financial statements for the years ended 31 March 2006 and 31 March 2007. It is made without any admission of liability on the part of BDO Spicers.
Les Currie Official Assignee at Hamilton and liquidator of Capital + Merchant Finance Limited (In Receivership and In Liquidation) says the agreement with BDO Spicers settles a long standing civil claim as instigated by the liquidator. The settlement was reached after assessment of the risks and benefits of litigation and the associated costs.
“This milestone represents a significant settlement in this matter for the ultimate benefit of the investors in the company - several thousand public investors who purchased secured debenture notes”.
“It was achieved after rigorous negotiations and consultation. My team of insolvency personnel, experts and legal counsel have all worked diligently to ensure the best possible outcome for the company and its investors,” says Mr Currie.