A federal court judge has paved the way for the liquidator of North Sydney Finance (NSF), a subsidiary of the failed Westpoint Group, to distribute ASIC settlement funds to creditors and noteholders.
In a letter to NSF creditors and noteholders, dated 5 September, Ferrier Hodgson representative Martin Jones said Justice Gordon found in favour of Ferrier Hodgson’s application for the distribution of the settlement sums.
“I am pleased to advise that her Honour made orders that the distribution of the settlement sums be allocated in accordance with the proposed mechanism put forward by the liquidators,” Jones said.
“Her Honour also made orders . approving the entry into the deeds of settlement and release with the former auditors and one of the directors and his related entities.”
He said ASIC had also confirmed it would distribute NSF’s portion of the available settlement proceeds “in the near future”.
“In view of the above, I expect that I will be in a position to advertise my intention to declare a dividend by the latter part of September,” he said.
“Please note that until I have received the proceeds from ASIC, I am unable to report to creditors and noteholders the anticipated dividend rate.”
The application was heard before the court on 30 August.
In February, 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 which 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 those actions would 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.
