The six and a half year receivership of carpet maker Feltex has come to an end with ANZ, the bank that pulled the plug on the stricken carpet maker, still owed north of A$16 million (just under NZ$20 million at today's exchange rate).
Receiver McGrathNicol, appointed by ANZ on September 22, 2006, says in its last report ANZ is owed A$2.45 million, plus accrued interest since its appointment. A report from liquidator McDonald Vague earlier this year suggested ANZ was still owed "in excess" of A$16 million including interest and costs that have accrued since 2006.
Feltex was tipped into receivership after a frustrated ANZ, which was owed A$119.5 million, pulled the plug. The receivership came little over two years after Feltex shares were sold for NZ$1.70 each in a NZ$254 million June 2004 initial public offering when private equity group Credit Suisse First Boston Asian Merchant Partners sold out. McGrathNicol was appointed receiver and McDonald Vague was subsequently appointed liquidator in December 2006.
Australian rival Godfrey Hirst bought Feltex out of receivership on October 20, 2006.
McDonald Vague says it has received 614 claims from unsecured creditors worth almost NZ$13.9 million. It has also received claims worth nearly NZ$6.3 million from 166 Feltex shareholders. The liquidator is taking legal action against Feltex's auditor Ernst & Young and expects a court hearing in November this year, or possibly in September.