Call to appoint troubleshooters

Press, 16 August 1988, Page 24

Call to appoint troubleshooters

PA Auckland Troubleshooters should be appointed immediately to stop panic by investors over the collapsed Registered Securities, Ltd, and Landbase companies, veteran receiver, Mr Doug Hazard, says. Mr Hazard, who has handled the JBL receivership for 15 years, said the hiatus between provisional liquidation and petitions to wind up the two contributory mortgage companies would cause further unrest among the thousands of investors. RSL closed its doors on July 26 when it was found that half of the $lOO million of mortgages with the company were in arrears.

On Sunday 700 people with funds in both companies packed the Rangitoto College Hall to vent their anger about the collapses and to form action groups. Four hundred RSL investors met in Christchurch to form a steering committee, while another group met in Tauranga.

Landbase was declared insolvent on Friday with more than two-thirds of its $75.8 million mortgages in arrears. The hearing for the winding-up petition for Landbase is on September 22.

No date has yet been set for RSL.

Mr Hazard said groups

of investors seeking legal action for their plight was no solution.

“When I was dealing with JBL in the early days I was very chary about using solicitors, because I thought that was money going down the drain which otherwise ought to be in investors’ pockets. “The most important thing is to get a person at the helm for each company who will front on television and to other media to show the situation is clearly in control. “That person must have mana and presence and let the whole world know he is sitting on top of the situation.

“He must be professional and available to answer investors’ queries and concerns.

“Then the people would know that there is no further action they can take to protect their funds because the person at the helm is doing that anyway.”

Mr Hazard said when he put himself in the public eye over JBL fears were quickly allayed.

“I let investors know that I would protect their rights whether they knew them or not and whether they had legal priority.” He said the provisional liquidators at present appointed as intermediaries for both RSL and Landbase did have responsibilities to preserve equi-

ties. “They are not in the wilderness as far as taking action is concerned.” Mr Hazard suggested pooling of funds as a way of getting a fair distribution back to investors. However, Mr John Tuck, agent for the provisional liquidator for RSL, said there would not be pooling. Recovery of investor funds would depend on the state of the mortgage in which they had invested. Mr Ted Wallen, chairman of the RSL investors group, said the atmosphere of investors was hostile when they arrived at the college hall. “I think they left the meeting in a better frame of mind after realising they had a sense of unity,” he said.

“All sorts of ideas of what we could do were suggested. We really don’t know yet until they get access to the company records.

“There were elderly people there who didn’t know the risk they were taking with contributory mortgage companies.

“One old woman had her whole life savings of $200,000 tied up in RSL. “For four years, though, she had got very high interest returns.

“People were confused, angry and humiliated.”