The liquidator of North Sydney Finance (NSF), a subsidiary of the failed Westpoint group, has sought court advice in relation to the allocation of settlement monies recovered by ASIC on behalf of investors.
In a letter to NSF creditors and noteholders, dated 11 July, Ferrier Hodgson representative, Martin Jones, said an application had been lodged with the Federal Court of Australia in Melbourne on 5 July.
The application sought orders and directions regarding the allocation of settlement sums secured by ASIC in its actions against former Westpoint company auditors and directors.
The application will be heard before the court on 30 August, Martin said.
"If the application is successful, I will be in a position to call a third dividend to creditors and noteholders on NSF," he said.
"I anticipate that the court will give directions and make orders reasonably shortly after the hearing."
Jones said in view of this, he anticipates Ferrier Hodgson may be in a position to distribute the ASIC proceeds, as directed by the court, to NSF creditors and noteholders in early November this year.
"All creditors and noteholders of NSF will receive a further update and appropriate notices prior to payment of the third dividend," he said.
Details of the dividend amount investors could expect was not available.
In February this year, ASIC settled its Federal Court actions on behalf of nine Westpoint companies against parties linked to the property group.
The nine Westpoint Group companies with whom KPMG and the five Westpoint directors have settled are Anne Street Mezzanine Pty Ltd, Bayshore Mezzanine Pty Ltd, Bayview Heritage Mezzanine Pty Ltd, Market Street Mezzanine Ltd, Market Street Mezzanine No.2 Pty Ltd, Mount Street Mezzanine Pty Ltd, York Street Mezanine Pty ltd, Cinema City Mezzanine Pty Ltd and NSF.
The settlement of these actions will result in an additional recovery for the benefit of investors through the liquidation process of up to an additional $67.45 million, an ASIC statement said at the time.
