Update on Ross Asset Management (In Receivership)

Monday 17 December 2012
News Release
Update on Ross Asset Management (In Receivership) and Related Entities (In Receivership)

PwC Partners John Fisk and David Bridgman as Receivers and Managers to Ross Asset Management Limited and related entities today made applications to the High Court in Wellington for their appointment as liquidators to a number of the Ross Group companies. This step was anticipated in their report to the Court on 13 November as the most appropriate way to manage a number of the issues arising from the Ross Group receiverships.

The High Court has ordered John Fisk and David Bridgman be appointed liquidators of the following Ross Group companies:
• Ross Asset Management Limited (In Receivership)
• Bevis Marks Corporation Limited (In Receivership)
• McIntosh Asset Management Limited (In Receivership)
• Mercury Asset Management Limited (In Receivership)

In addition, the Court was advised shareholder resolutions are to be passed today to appoint John Fisk and David Bridgman as Liquidators to the following Ross Group companies:
• Dagger Nominees Limited (In Receivership)
• Ross Investment Management Limited (In Receivership)
• Ross Unit Trust Management Limited (In Receivership)
• United Asset Management Limited (In Receivership)

The first liquidators’ statutory report for all of the above companies will be produced and posted to investors later this week.

Mr Fisk notes, “Our appointment as Liquidators gives us greater powers to investigate complex transactions and issues, and to distribute assets, which we did not have as Receivers. There are a number of matters that will need to be addressed in the liquidations early in the New Year. This includes a meeting of creditors that will be conducted by postal vote by 8 February 2013 to confirm our appointment as Liquidators and to form a Liquidation Committee to provide investor input to assist with the liquidations.”

In regard to forming a Liquidation Committee, the Liquidators are requesting investors and creditors to nominate members of the Committee by sending details of nominees to them at the PwC website at http://www.pwc.co.nz/rossassetmanagement/

It is important all nominations for the Liquidation Committee are received within the next 48 hours so that voting forms can be included in the report to be sent to all investors and creditors later this week.

Mr Fisk says, “Given the significant shortfall in assets available to investors at present, we need to be mindful that whatever actions are taken in this process are cost effective and recognise the difficult financial position many investors now find themselves in. There have been a number of comments in the media about significant liquidation and legal costs that may be incurred in recovering money from investors who received repayments from their portfolios within the last two years. The issues in this insolvency are very complex and involve difficult areas of law and ones that we have not formed a final view on.

“We wish to emphasize it would be premature to assume anything at this stage in regards to third party recoveries; further investigation and legal advice is required. This will then be considered by the Liquidators and the Liquidation Committee. Any decisions on pursuing third party recoveries will be considered against the costs, risks and benefits of the potential claims. The last thing we want is for investors to get ahead of themselves by incurring additional legal costs or expecting great recoveries from this source. ”

Given the number of companies involved in the liquidations and the intermingled nature of how the companies appear to have operated, Mr Fisk says, “A further option being considered as a priority will be whether an application will be made to the Court to have all assets and liabilities of the companies pooled under the applicable provisions in the Companies Act.”

Notes:
PwC Partners Mr John Fisk and Mr David Bridgman were appointed Receivers and Managers to Ross Asset Management Limited and related entities, pursuant to FMA application under the Financial Advisers Act.
Ross Asset Management Limited and related entities include (In Receivership) (the “Ross Group”) comprise of:
• Ross Asset Management Limited (In Receivership)
• Bevis Marks Corporation Limited (In Receivership)
• Dagger Nominees Limited (In Receivership)
• McIntosh Asset Management Limited (In Receivership)
• Mercury Asset Management Limited (In Receivership)
• Ross Investment Management Limited (In Receivership)
• Ross Unit Trusts Management Limited (In Receivership)
• United Asset Management Limited (In Receivership)
• Chapman Ross Trust (In Receivership)
• Woburn Ross Trust (In Receivership)
• Mr David Robert Gilmour Ross (In Receivership)
• Ace Investments Limited or Ace Investment Trust Limited or Ace Investment Trust (In Receivership)
• Vivian Investments Limited (In Receivership)
• Ross Units Trusts Limited (In Receivership).

© Scoop Media