FMA seeks wind-up of Forestlands
The Financial Markets Authority (FMA) has applied to the High Court to place 18 Forestlands companies into liquidation because it has no faith in the company’s director to look after the interests of shareholders.
For the past year the Serious Fraud Office and the FMA have been investigating Motueka-based Forestlands after some of its 4400 investors complained they hadn’t received payments from forest land sales in Hawke’s Bay, Wairarapa and Southland.
Meanwhile, High Court justice Matthew Muir last Friday ruled that a debt to the Inland Revenue Department of $1.5 million and interest of $112,586 could be paid from $18m of sale funds held in trust by law firm Anthony Harper.
This was because if the money was not paid by midday Monday April 23 the amount would incur additional penalty interest of $157,316m which would further disadvantage investors awaiting repayment.
The court order was sought because the FMA had declined consent to pay the money from the $18m in trust ‘‘as liquidation proceedings were before the courts’’.
However, the court order was made and an FMA spokesman said he expected the payment had been made to Inland Revenue.
The FMA application for liquidation has been filed at the Nelson Registry of the High Court and a hearing will take place on April 26.
‘‘The FMA is bringing this application because at this point it has no confidence in the director (Rowan Kearns) to manage the relevant interests appropriately between the director, the entities associated with him, ‘B’ shareholders and creditors of the Forestlands companies,’’ the FMA said in a statement.
‘‘The application to appoint a liquidator will bring independence and certainty to the process and enable the liquidator to determine the appropriate way forward for releasing Forestlands funds to investors.’’
Advertisements have been placed in the Gazette and will also appear in the local newspaper, the Nelson Mail.
The application does not cover Forestlands NZ and Forestlands Marketing, also in the Forestlands group of companies
Shareholders and creditors have been offered a copy of the affidavit setting out the FMA’S case in seeking the liquidation of these companies.