ASIC is yet to decide whether it will release around $10 million of Westpoint investor funds to the liquidators of the failed property group.
It is understood the corporate regulator is in possession of the multi-million-dollar settlement funds for the benefit of certain Westpoint Group companies.
“On 30 September 2011, ASIC made payments totalling approximately $57 million to the liquidators (plus accrued interest) in accordance with the federal court orders made on 1 September 2011 and the terms of the settlements,” an ASIC statement to Westpoint investors said.
“ASIC continues to hold the balance of the proceeds from the settlements (approximately $10 million) for the benefit of certain Westpoint Group companies subject to a number of conditions which are confidential.”
An ASIC spokesperson was unable to make any comment on the status of the funds or when funds would be released.
A spokesman for Ferrier Hodgson, one of the liquidators of the Westpoint groups, said it had received more than $3.8 million of its allocation for Westpoint subsidiary North Sydney Finance.
“The company received $3,864,150 in respect of its allocation from the ASIC on 30 September 2011, and may receive a further distribution from ASIC in the future,” the spokesman said.
“At this stage the liquidators are unsure whether this will eventuate.”
He said Ferrier Hodgson had notified all known noteholders and creditors of North Sydney Finance last month of its intention to declare a third and final dividend on or before 4 December.
“As we are still awaiting responses from noteholders and creditors, funds have not yet been distributed,” he said.
“As noted to noteholders and creditors, this will occur on or before 4 December 2011.”
