The liquidation of North Sydney Finance (NSF), a subsidiary of the failed Westpoint Group, has stalled with the company's liquidator unable to complete its duties until obtaining ASIC clearance, according to a letter to creditors.
In a letter to members, creditors and noteholders, Ferrier Hodgson partner Martin Jones said he was waiting for the green light from the corporate regulator regarding an investigation report.
Jones said he had lodged two investigation reports to ASIC - the first lodged on 15 May 2008, with the second report filed more recently - and he was now awaiting instructions.
"My investigative report into the affairs of the company was lodged with the ASIC on 15 May 2008 pursuant to section 533 of the [Corporations] Act," he said in the letter, dated 8 May.
"The report is confidential between the liquidator and the ASIC and I am therefore unable to disclose any information in this regard.
"I advise, however, that the ASIC subsequently requested that I complete a supplementary report into the affairs of the company pursuant to section 533 (2) of the act."
He said he had completed and lodged the supplementary report.
"The finalisation of NSF cannot be completed until clearance from ASIC to finalise the liquidation is received," he said.
"Again, this report is confidential between the liquidator and the ASIC and I am therefore unable to disclose any of the matters contained within my report."
He said the outstanding matters in the liquidation related to determining the extent, if necessary, of the applicable amount of income tax payable; collecting and distributing the remaining proceeds, if any, from the KPMG settlement to creditors of NSF; and awaiting clearance from ASIC to finalise the liquidation.
In December last year, Jones informed creditors that approval had been given for the release of a third and potentially final dividend payment to NFS creditors and noteholders.
The Westpoint property group collapsed in 2006 with oustanding total capital invested of $388 million.
