Lombard Finance & Investments Limited (In Receivership)

This website is your primary source of information related to the receivership of:

  • Lombard Finance & Investments Limited
  • Lombard Property Holdings Limited
  • Lombard Asset Finance Limited
  • Lombard Asset Finance NO.2 Limited

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This site will be updated as information becomes available. We encourage you to visit this site if you have any concerns and/or additional enquiries.

 

Updates:

7 December 2018 Receivers' 22nd report on the state of affairs
23 May 2018 Receivers' 21st report on the state of affairs
28 November 2017 Receivers' 20th report on the state of affairs

7 June 2017

Receivers' 19th report on the state of affairs

21 November 2016

Receivers' 18th report on the state of affairs

31 May 2016

Receivers' 17th report on the state of affairs

18 November 2015

Receivers' 16th report on the state of affairs

15 June 2015

Receivers' 15th report on the state of affairs

3 December 2014

Receivers' 14th report on the state of affairs

13 June 2014

Receivers' 13th report on the state of affairs

28 February 2014

Receivers' 12th report on the state of affairs

24 February 2014

Settlement reached for Lombard (In Receivership) claims

24 December 2013

Update to Secured Debenture Investors

3 December 2013

Application for retirement and appointment of trustee:
Perpetual Trust Limited and various companies In Receivership and/Or Liquidation

6 September 2013

Report to investors

Update to Investors

02 July 2013

We refer to our previous report to secured debenture investors dated 21 December 2012, and set out below a further update on progress.

There are two main areas of focus remaining in the Receivership:

To realise the remaining underlying property securing Lombard’s loan book to ensure further distributions can be made to secured debenture investors as soon as possible

To deal with the potential claims as outlined below.

Property Assets

The majority of the property assets securing Lombard’s loan book have been realised; and the remaining property assets are as follows:

One remaining section in a completed residential subdivision (the other sections in the subdivision were sold with the proceeds paid to Lombard)

One bare land development site, which has been subject to several marketing campaigns. No acceptable offers have been received to date

One property is a completed coastal sub-division, which has proven difficult to realise due to a number of issues. We are currently working with the relevant local council to resolve some of those issues.

Investigations

Claims against Directors

As previously reported, we have identified a claim against Lombard's Directors for breach of directors' duties under the Companies Act 1993. Without prejudice discussions are continuing in relation to that claim to determine whether it is possible to reach a negotiated settlement, thereby avoiding the costs and delays associated with pursuing the claim through to a trial in the High Court.

Although we are unable to specify a clear timeframe for the completion of the without prejudice discussions at this stage, we are progressing the discussions as quickly as possible. However, if those discussions do not result in a satisfactory conclusion, we expect to advance the claim in the High Court without delay.

Claims against Third Parties

We have also previously reported that we were investigating potential claims against third parties involved with Lombard. We have determined there is a claim against a third party and we are in without prejudice discussions with that third party. Any further details in respect of that claim cannot be disclosed while those discussions continue. As with the claim against the Directors, if a satisfactory conclusion cannot be reached in respect of that claim, then it is likely to be pursued in the High Court.

We are conscious it is taking some time to deal with potential claims against Directors and third parties. This is primarily due to the complexities of the claims and the volume of documents involved. We acknowledge that investors wish to see these claims resolved as quickly as possible so that funds can be distributed.

The claims may have a material effect on the assets of Lombard available for distribution to secured debenture holders. We remain of the view that progressing the discussions with the Directors and the third party with a view to reaching a determination as quickly as possible provides the best opportunity to maximise recoveries for investors rather than entering into a court process.

We are also aware of concerns by some investors regarding statute of limitation issues. We confirm we have taken steps to ensure that any claims we may bring against the Directors are not time barred.

We expect to write formally to secured debenture investors in early August to update them on the status of the settlement negotiations.

June 2013

Receivers' 11th six monthly report

21 December 2012

Report to investors

14 September 2012

Report to investors

Update for Lombard Secured Debenture Investors

16 July 2012

We advise that our next report will be mailed to secured debenture investors by 17 September 2012. There is considerable work being undertaken in respect to our investigations at present. We expect to be able to confirm in our next report details of any action that will be taken in relation to our investigations.

Please note this date has been extended by two weeks to 17 September 2012 whilst we await confirmation from a third party on a particular matter relating to our investigation.

21 February 2012

Report to investors

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.

25 October 2011

Report to investors

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.

23 March 2011

Letter to investors

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.

November 2010

Letter to investors

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.

27 July 2010

Letter of second distribution

Report to investors

June 2010

Receiver's fifth report

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.

25 February 2010

Letter to investors

09 December 2009

Receivers' fourth report

02 December 2009

Letter to investors

02 December 2009

Letter from Perpetual Trust

31 October 2009

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.

29 July 2009

Letter to investors

28 April 2009

Letter to investors

10 April 2009

Receiver's third report

15 December 2008

Report to investors

10 October 2008

Receiver's second report

3 September 2008

Letter to investors

9 June 2008

Receiver's first report

23 May 2008

Letter to investors

11 April 2008

Perpetual Trust: letter to investors

10 April 2008

Media Release: Perpetual Trust places Lombard Finance into receivership

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