Futures refunds likely?

Press, 21 July 1988, Page 23

Futures refunds likely?

The Futures Exchange (NZFE) believes clients will be repaid the funds that they deposited with Goldcorp Futures. The futures company parent, Goldcorp Holdings, went into receivership last week. The Futures Exchange had checked the financial records of Goldcorp Futures and concluded the company had deposited clients’ funds correctly according to the exchange’s rules, the exchange said in a statement. “Legal advice has been received by the exchange that the Bank of New

Zealand does not appear to have been entitled to offset Goldcorp Futures client funds against the debts of other Goldcorp group companies.” Goldcorp Futures is not in receivership, but was suspended by the exchange last week when there was concern that the net tangible assets of the company might have fallen below the minimum allowed because of the action of the bank. The exchange does not expect any claims against its fidelity fund because of Goldcorp Futures.

The exchange hopes to provide more information after discussions with interested parties next week. Meanwhile a group of Goldcorp Futures creditors is seeking legal advice on whether BNZ had the right to take that company’s substantial cash reserves. The group claims noone holds a debenture over Goldcorp Futures. But when clients tried to withdraw money on deposit with Goldcorp Futures they were told the BNZ had all the money.