MTF
19/11/2014 08:36
GENERAL
REL: 0836 HRS Motor Trade Finances Limited
GENERAL: MTF: MTF provides update on Sportzone case
In a release to the market on 22 October 2014, MTF noted that the High Court
had released a second judgment (the Quantification Judgment) in the Sportzone
case. The Quantification Judgment seeks to apply the 'close relevance test'
stated in the Court's original judgment (the Liability Judgment). The
Quantification Judgment does not quantify the amount by which the fees at
issue under the 39 Sportzone loans, which are the subject of the proceeding,
are deemed to be unreasonable in terms of the Liability Judgment. MTF noted
that precise quantification requires further calculations to be made by the
Commerce Commission and MTF.
MTF is working with the Commerce Commission on the calculations. The
calculations are now almost complete but subject to consideration by the
Court.
On the basis of the further calculations, and pending consideration by the
High Court, the aggregate amount by which the MTF fees in respect of the 39
Sportzone loans would be said to be unreasonable would be less than $10,000.
The calculations are based on the Liability Judgment and the Quantification
Judgment. MTF considers that those judgments are incorrect. Both judgments
are subject to appeal. The hearing in the Court of Appeal in Wellington is
set for 19 and 20 November 2014.
MTF is not in a position to finally quantify any ultimate liability in
relation to the 39 Sportzone loans or any other loans originated by MTF
shareholders.
MTF will not be making any further comment, while the matter remains before
the Court.
Angus Bradshaw
Managing Director
End CA:00257831 For:MTF Type:GENERAL Time:2014-11-19 08:36:55
