Feltex Five settle with liquidator

Feltex directors: John Hagen, CEO Peter Thomas, chairman Tim Saunders, Peter David Hunter and John Feeney. Photo / Sarah Ivey

Directors of the failed Feltex Carpets have made a "modest and pragmatic settlement reached on a costs saving basis" with the firm's liquidators, McDonald Vague.

The confidential settlement follows the Registrar of Companies failure in the District Court last year to prove claims that the five directors - chairman Tim Saunders, former chief executive Peter Thomas, Peter Hunter, Michael Feeney, and John Hagen - had put their own interests ahead of shareholders' and had allowed the company to trade while "balance sheet insolvent".

That case found the "overwhelming evidence" was that the directors had conducted themselves at all times with "unimpeachable integrity," said McDonald Vague in the only statement being issued on the settlement.

"The liquidators acknowledge that the settlement is entered into without any admission of liability by the directors," their statement said, apparently reflecting a mutual desire not to pile up more legal costs on the issue.

The liquidators were appointed in December 2006 and issued proceedings against the directors in 2009.