Lombard Finance directors, from left, Lawrence Bryant, William Jeffries ,Michael Reeves and Sir Douglas Graham in the dock during their sentencing at the High Court in Wellington. Photo / APN
The receivers for failed lender Lombard Finance & Investments has trimmed the top end of expected recoveries, and is likely to make a claim against third parties as they seek to claw back funds for jilted investors, according to their latest report.
The receiver continued to investigate Lombard Finance's transactions,
and based on "current factual and legal assessment, it is likely that claims will be issued against third parties, with a view to making recoveries for the benefit of investors," PwC's John Fisk said in his latest update.
"We are not able to comment further on the exact nature of those claims at this stage because to do so may prejudice the claims," Fisk said.
The move comes as former Lombard Finance directors Sir Doug Graham, Bill Jeffries, Lawrie Bryant and Michael Reeves prepare to appeal their convictions for misleading investors by signing off on offer documents that omitted material information about the lender's liquidity situation in late 2007. A date for the appeal hearing has yet to be set.
The receiver estimates 3,900 secured debenture holders owed $111 million will get between 15 per cent and 20 per cent of their principal back. That's down from an estimated range of between 15 per cent and 22 per cent.
