Five Star Consumer Finance - FAQs
1. What has happened to Five Star Consumer Finance Limited?
Answer - Richard Agnew and Anthony Boswell (and subsequently Colin McCloy), partners of PricewaterhouseCoopers, were appointed receivers of Five Star Consumer Finance Limited
2. Why were receivers appointed?
Answer - The board of directors of Five Star Consumer Finance requested the company's trustee, Covenant Trustee Company Ltd, to appoint receivers.
3. I am a debenture holder in Five Star Consumer Finance, what happens to my investment?
Answer - As part of the receivership principal repayments from scheduled maturities will not be made until further notice (see 5 below).
4. What about interest on my investments?
Answer - Similar to principal repayments, no interest payments to debenture holders will be made, until further notice.
5. What will the receivers do now?
Answer - We are in the process of securing the assets of Five Star Consumer Finance and are currently determining its financial position. The PricewaterhouseCoopers receivers will prepare and send a report to debenture holders on their initial findings of Five Star Consumer Finance's financial position as soon as possible. At that stage we hope to be in a position to advise debenture holders of potential returns on their investments.
6. How much money does Five Star Consumer Finance owe to debenture holders?
Answer - We continue to work with management to finalise the outstanding amount owed to the approximately 2145 debenture holders with 3200 investments. As part of this process, we have written to all investors seeking confirmation of their investments. At this stage, it is estimated that Five Star Consumer Finance owes approximately $52m to secured debenture holders.
7. When will I receive returns on my debenture investment?
Answer - The timing of any payout is difficult to assess at this stage as it will depend on a number of factors including the method by which the value in the loan book and other assets is realised. It is possible that recoveries to investors will be paid out over time as loans and assets are realised. As a result, it would be prudent for investors to assume that they will not obtain any recoveries in the interim. Once we have a better indication of potential timeframes for recoveries we will advise investors.
8. My contact details have changed. Who do I notify of my change of address?
Answer - If your postal details have changed, please advise Five Star Consumer Finance of your updated address details in writing, and your account details will be updated accordingly.
9. Can I receive updates on the receivership via email?
Answer - Investors will receive a hard copy of any formal updates on the Five Star Consumer Finance receivership via post. Electronic versions of updates and any other information released can be found on our website at: www.pwc.com/nz/fivestarfinance
10. My investment was due to be repaid before Five Star Consumer Finance was placed into receivership on 29 August 2007. Am I ranked ahead of other investors and likely to receive a full refund of my investment?
Answer - Five Star Consumer Finance was unable to meet its financial commitments to all investors immediately prior to the date of receivership. As a result, your investment was not repaid prior to our appointment. One of the consequences of the receivership is that all scheduled but unpaid repayments (whether due before, on, or after the date of receivership) rank equally with other debenture holders and will be repaid on a pro-rata basis as asset realisations are made by the Receivers.
11. Can the ownership of investments be transferred?
Answer - At this stage of the receivership, only transfers relating to deceased estates are being processed. The receivers will consider other written requests for transfers on a case-by-case basis.
12. I have investments in Five Star Finance Limited (In Receivership). How do I contact the receiver of this company?
Answer - The contact details for the Receiver of Five Star Finance Limited (In Receivership) are as follows:
Receiver: Mr Ray Burgess
Burgess & Associates
Phone: 09 576 7806
Fax: 09 576 7263
Email: rburgess@ihug.co.nz
13. I have a question re my investment. How do I communicate it to the receivers?
Answer - Please email us via our Five Star Consumer Finance specific webpage http://www.pwc.com/nz/fivestarfinance
If you have any queries please leave your name and contact details on our dedicated phone line (09) 355 8855 and we will endeavour to get back to you as soon as possible.