Lombard Finance trustee calls in receivers
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Lombard Finance has been placed in receivership owing its 4400 investors $127 million, after the firm’s trustee rejected directors’ proposals to implement a moratorium.
Perpetual Trust chief executive Louise Edwards, in calling in receivers last night, said “no compelling reason” existed for the proposed moratorium.
“The interests of investors will be better served by appointing receivers to independently address the issues the company has.”
John Waller and John Fisk, of PricewaterhouseCoopers, have been named receivers.
Lombard Finance, part of the listed Lombard Group, is the 17th finance firm to get into trouble in less than two years. The money hit by finance company problems is now over $2 billion.
The receivership also applies to other subsidiaries, Lombard Asset Finance, Lombard Property Holdings and Lombard Asset Finance No 2 Lombard Group itself is unaffected.
Edwards said all payments of interest and principal to Lombard Finance debenture holders had been suspended with repayment to be announced.
By DAVID HARGREAVES - The Press
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