Lombard civil case dropped
Monday, February 24th 2014, 2:00PM
The FMA has dropped civil proceedings against four Lombard directors.
The finance company’s receivers have reached a $10 million settlement with the directors, their insurers and a third party.
About 3900 secured debenture holders were owed $111 million when Lombard collapsed in April 2008.
The FMA has consented to the settlement and, as a condition of the agreement, will discontinue its own civil proceedings against the directors of Lombard.
The receivers said FMA was of the view that the PwC settlement represented the best outcome for Lombard investors, and that, given it had limited prospects of achieving any better recovery through its own claim, it was in the public interest to consent to the settlement and discontinue its claim.
PwC said: “The settlement will enable us in the near future to pay a further distribution of 9 cents in the dollar. Combined with the 13 cents already paid to date, this will bring overall recoveries for secured debenture investors to 22 cents, exceeding our previous upper estimated outcome of 20 cents.”
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