Happy ending to Commodore tale

Press, 17 May 1989, Page 34

Happy ending to Commodore tale

Settlement is coming near for investors in two collapsed schemes of the 19705: The syndication of flats in a contributory mortgage scheme; and a group of cattle and thoroughbred syndicates. The directors of the scheme included Mr J. G. Williams and Mr H. P. Holt. Investors in Commodore contributory mortgage schemes and in the Parklands contributory mortgage scheme, through Pacific Syndicates (N.Z.), Ltd — which has been in liquidation the past 12 years — have received a first and final payment from the liquidator, M. K. J. Jensen, at Peat Marwick. In an ending that turned out much better than could have been foreseen 12 years ago, they are being paid in full. In addition, Commodore investors are receiv-

Ing almost $1.95 on the dollar; and Parklands investors are receiving more than 60c on the dollar. This represented a distribution of income earned on their behalf, Mr Jensen said. The distribution follows the final order of the High Court as to the disposition of the various funds and the allocation of costs. The Court ruled that the net proceeds of certain mortgage investments plus term deposit interest earned over a period of more than 11 years have been held in trust for investors in the mortgage syndicates. All other creditors in both companies are to share in the balance available from the realisation of other assets. These are some cattle, horses, vehicles, bank accounts, properties (mainly rentals) and the drawn-

out damages claims against the directors, Messrs Williams and Holt. Mr Jensen said that Mr Williams had met his obligations adequately, and has been given until June 30 to pay the balance of a half share of the debt. But Mr Holt is considerably in arrears and it has been necessary to commence legal proceedings in Australia to enforce payment. Mr Jensen thinks it might be at least two years before completion. Without any guarantee he could reasonably expect to pay a further 8c in the dollar which could increase to 22c “in the fortunate event of obtaining recovery in full.” In the meantime funds were available to make an interim distribution of 26c in the dollar on total general creditors of $1,119,873, Mr Jensen said.