Van Eyk liquidation application due in court

Perpetual Trust is set to go to court next week to liquidate Van Eyk Advice New Zealand.

Friday, October 24th 2014, 1:06PM

by Susan Edmunds

Chairman Andrew Barnes said the company was going through the process. “There is a potential sale as I understand it and that may or may not result in the process being continued, aborted or otherwise.”

The liquidation application will be heard in court next week.

Van Eyk struck trouble on both sides of the ditch after Macquarie terminated Van Eyk’s funds because of an illiquid investment made by UK-based fund manager Artefact Holdings.

Saturn Portfolio is believed to be set to purchase Van Eyk’s New Zealand advice business. A spokeswoman said earlier in the month that the deal was due to go unconditional on October 10. She could not be reached for comment today. The sale is still believed to be imminent.

A recent creditors report said: "In relation to the New Zealand business, I have signed a term sheet with a party which I am hoping to contract within the next few days, subject to regulatory approval."

There were nine advisers working for Van Eyk advice.

Barnes said most Perpetual Trust money had been pulled out of Van Eyk last year, when there was concern raised about the way it was being run.

But he said the liquidation action was about ensuring the remaining monies went back to the funds. There was a relatively small exposure, he said.

In Australia, a creditors meeting this week was told Van Eyk Research was being put into liquidation at the recommendation of an administrator.

Barnes is chairman of Australian Wealth Investments, the largest shareholder. But he said AWI was a small creditor in Australia.

He said there was the potential for legal action but that was for the liquidator and administrator to consider. “There is potential for action against directors and other counterparties there.”

A sale is also believed to be imminent for the Australian business.

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