Investors who sank money into National Finance 2000 shortly before the company failed are to get their money back in full but others will have to wait another week to learn how much of their money will be returned.
Receivers Colin McCloy and John Waller said about $750,000 plus interest
would be returned to 92 National Finance 2000 investors this week.
The money was received by National Finance 2000 from the investors at a time when the company was unable to issue debenture stock through its registered prospectus breaching the Securities Act. Because of that, the money was held in a solicitor's trust account.
"As receivers we have assumed control of the account and we will be returning the money to the relevant investors later this week," said McCloy.
Meanwhile, the position of the company was becoming clearer and McCloy and Waller were finalising their analysis of National Finance's loan book.
"We expect to be in a position to write to the remaining 2026 investors - who invested about $25.5 million - next week with an initial view of potential recoveries."
Until the analysis was complete, McCloy said, he could not give any guidance on how much of their money the remaining investors could expect to see.
National Finance 2000 and affiliated used car company Payless Cars, both headed by Allan Ludlow, were placed in receivership on May 9 sparking fears of further finance company collapses, especially among those lending to car buyers.
National Finance provided loans to customers buying vehicles from Payless Cars' four Auckland yards, which are now closed.
Ludlow has said he will work closely with the receivers to get the maximum amount of money back for investors.
