Tasman Mortgages placed in liquidation

Blue Chip has caused another company failure in New Zealand; the latest victim being Tasman Mortgages.

Thursday, March 26th 2009, 10:06PM

Tasman’s parent company, Lombard, yesterday appointed liquidators to the group following a tax dispute which dates back to Tasman’s former owner – Bluechip.

Lombard Group acquired 70% of the shares in the Tasman Mortgages Group from the Blue Chip (now called Northern Crest Investments) in July 2007 for $50,000 in cash with the balance of the purchase price to be paid on an earn out basis. It then, earlier last year, agreed to acquire the remaining 30% of the shares for no consideration.

Last month the Inland Revenue Department sought to wind up Tasman Mortgage Brokers due to unpaid tax for a period prior to when Lombard bought a shareholding in Tasman.

Lombard chief executive Michael Reeves says one of the obligations of the vendor, Northern Crest, was the vendor would meet all taxation liabilities arising prior to the date of settlement.

“As Northern Crest has failed to honour this obligation the Inland Revenue Department has proceeded to make this application and are seeking payment from Tasman Mortgage Brokers.”

He says Lombard has talked to IRD and has recently made a formal demand on Northern Crest under the warranties in the Sale and Purchase Agreement.

Tasman Mortgage Brokers has not undertaken any new business for “some considerable time” he says and is not subject to the wind up application.

“However, due to events that occurred prior to Lombard acquiring its shareholding in Tasman Mortgages Group, one of the major lenders has taken over management of that part of the mortgage book which relates to their funding. As a result of this, the trail income due to the Tasman Group has now significantly reduced, as has the quantum of mortgages under management".

Lombard Group has decided to appoint a liquidator to Tasman Mortgage Brokers and Tasman Mortgages.

Reeves says, in a statement to the NZX, that this will “assist in concluding the affairs of Tasman Mortgage Brokers and Tasman Mortgages.”

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