Securitibank losses now put at S27M

Press, 17 July 1979, Page 20

Securitibank losses now put at S27M

Commercial

PA Auckland j Securitibank creditors will 'lose more than S27M, which lis more than double the i original estimate, the Provisional Liquidator (Mr E. j Gould) said in a report to a (meeting in Auckland yesterday. Mr Gould said that, of the [572,739,546 o'wed to credii tors by the group, only ($36,896,327 will be recovered : for distribution. ■ Previous esimates, in the 1 group's Statement of Affairs, put the "true net external .deficit" at $12,403,033.

Mr Gould reported that unsecured creditors could expect an eventual dividend of 36.3 c in the dollar. However, he did not think that dividends would be paid before the end of next year. “This decision as to when, and how, a dividend will be paid must be made by the Liquidator,” said Mr Gould. “He will be aware, in coming to his decision, of the urgent needs of many creditors, and clearly must give those needs the strongest consideration.” The report was distirbuted to creditors attending a [meeting in the Auckland i Town Hall to vote on recommending a new Liquidator for the Securitibank group after the death of Mr K. Crawshaw.

The creditors voted for Mr C. E. Sturt, a Securitibank investigator and lawyer, and Mr H. Goodman, accountant and property developer, as joint-liquidators. However, this was a recommendation only and Mr Gould will have to obtain ratification from the Supreme Court, which has the power to appoint the new Liquidator. The 200 creditors at the meeting also gave approval to a motion requesting the Liquidator to enjoin with the Auckland Paraplegics Association SSOM claim against the directors, and major shareholders of Securitibank. This vote is subject to poll confirmation. Eight people were nominated for the Liquidator’s position.