Lombard Finance & Investments Limited (In Receivership)

Update for Lombard Secured Debenture Investors - 8 February 2012

We advise that the update report for Lombard investors is currently being finalised and will be mailed to secured debenture investors no later than 13 February 2012.

Update for Lombard Secured Debenture Investors - 18 October 2011

We advise that an update report has now been mailed to Lombard’s secured debenture investors. We are pleased to advise that, following negotiation, all preferential claims that the IRD may have against the Companies have now been settled in full for an agreed amount.

As a result of settling the IRD’s preferential claim, we are now in a position to pay a further interim distribution of 2 cents in the dollar to secured debenture investors. This distribution will be paid on or around 27 October 2011.

Update to Investors - 18 March 2011

Due to the time taken to obtain preliminary tax advice on IRD's response regarding their potential preferential claim, we advise that our update to secured debenture investors will now be mailed to secured debenture investors on 23 March 2011.

Update to investors - 02 March 2011

In our letter to secured debenture investors dated 30 November 2010, we advised that a further update would be issued by 28 February 2011. We further advised that the IRD was to provide the receivers with the basis of their claim, which would in turn enable us to update investors on the status of the potential IRD preferential claim.

However, the IRD's response to us has been delayed due to the Christchurch earthquake (the IRD staff dealing with this matter are based in Christchurch) and we now expect to receive the information from the IRD later this week.

Accordingly, we now intend to issue our report on or around 14 March 2011 to ensure that we provide as much information as possible to investors on the potential IRD preferential claim.

Update to investors

In our letter to secured debenture investors dated 27 July 2010, we advised that a further update would be issued by 29 October 2010.

As noted in our previous reports, the Inland Revenue Department ("IRD") has yet to finalise its claims in the receivership. However the IRD had previously agreed to waive any preferential claim in respect of the two interim distributions made to secured debenture investors. The IRD has recently advised that as a result of the outcome of its audit it is no longer in a position to agree to waive any preferential claim in respect of any further interim distributions. We are meeting with the IRD in the next week and accordingly we intend to delay our report for two to three weeks. This will hopefully enable us to clarify IRD's position and provide a more informative report to investors on the timing of any further distributions.

• Letter of second distribution
• Report to investors

Update to investors

In our letter to secured debenture investors dated 25 February 2010, we advised that a further update would be issued by 30 June 2010.

We are pleased to advise that we have sufficient funds on hand to pay a further interim distribution of 2.5 cents in the dollar (calculated by reference to balances as at 10 April 2008) to secured debenture investors. However, we are currently working through recovery action on certain loans that could increase the interim distribution to up to 5 cents in the dollar.

For this reason, we intend to delay issuing our next report and now expect to issue this report on or around 12 July 2010. We will confirm in this report the amount of the next interim distribution.

Update to Investors:

In our letter to secured debenture investors dated 29 July 2009, we advised that a further update would be issued by 31 October 2009.

There are a number of matters that we are currently working on that we expect to resolve within the next few weeks. Resolution of these matters is expected to enable us to provide a more informative report to investors.

For this reason, we intend to delay issuing our next report to no later than 30 November 2009.