North Sydney Finance Ltd
Background Information:
To date, the liquidators have been able to distribute two dividends to creditors and noteholders in the total amount of 4.5 cents in the dollar.
The Australian Securities and Investments Commission (ASIC) settled action against the Company's former auditors, KPMG, and the companies directors in the amount of $67,175,000 in January 2011 in relation to 9 WestPoint related entities, the Company being one of those entities. On 5 July 2011, the liquidators of the 9 WestPoint related entities lodged an application in the Federal Court of Australia in Melbourne seeking orders and directions in relation to the allocations of the abovementioned settlement amount. On 30 August 2011 the Hon Justice Gordon made orders that the distribution of the settlement sums be allocated in accordance with the proposed mechanism put forward by the liquidators.
The Company received $3,864,150 in respect of its allocation from the ASIC on 30 September 2011, and may receive a further distribution from ASIC in the future. At this stage we are unsure whether this may eventuate.
Current Status and Actions Required by Creditors:
The liquidators notified all known noteholders and creditors of the Company on 4 October 2011 of their intention to declare a third and final dividend on or before 4 December 2011.
All unsecured creditors and noteholders of NSF are required to submit a formal proof of debt by 27 October 2011. Should any creditor or noteholder fail to submit a claim, then they may be excluded from this dividend. Please note if a creditor has received a dividend in the past or has already submitted a formal proof of debt form, they are not required to submit another. Creditors should contact Alex Godfrey of this office if they are unsure as to whether a claim has already been submitted.
We have estimated that the third and final dividend will be approximately 22 cents in the dollar on creditors total admitted claim, but subject to the receipt of any new claims from creditors.
Next Milestone and Estimated Timetable:
Payment of a third and final dividend to the unsecured creditors and noteholders of the Company is scheduled on or before 4 December 2011.
Likely Outcome for Creditors and Timetable:
Once the abovementioned third and final dividend has been distributed by the liquidators, the only remaining matters are:
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Receive clearance from the ASIC in respect of the Liquidators' supplementary investigative report pursuant to Section 533(2) of the Corporations Act.
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Await the outcome as to whether the balance of the settlement sums ($10m) in respect to the settlement with the auditors, KPMG, will become payable to the liquidators and distribute funds, if funds become available.
Once the above matters have been finalised, we will be in a position to wind-up the Company.