Legal stuff from NZ... googled news for Capital and Merchant... memory fading but there was some connection.... did vestar invest in them? or was it more direct? C&M were a end of 2007 headache,imo.
************ Perpetual removed as Capital + Merchant trustee
12/09/2013
(I pick a few lines to quote)
"The change removes a conflict of interest affecting Perpetual, which is being sued by the receivers of Capital + Merchant Finance over its supervision of the failed finance company in the run-up to its collapse in November 2007.
Perpetual appointed second receivers Grant Graham and Brendon Gibson, of Korda Mentha, in late November 2007. They took over the receivership in March last year after all the finance company's assets had been realised by the first receivers for the benefit of
preferred creditor Fortress.
With no assets left to recover, they saw the only way to get money for investors was to sue Capital + Merchant's trustee, auditor and legal adviser.
The lawsuit against Perpetual, alleging breach of contract and negligence, was filed in August last year." continues *********************************
and a quote.. "The case prompted the government to pass legislation earlier this year to prevent the Public Trust from finding itself in a situation as a stop-gap measure before a securities law overhaul recently passed its third reading, empowering the Financial Markets Authority to appoint a replacement trustee from among all the licensed supervisors.
Perpetual was one of two trustees to be singled out by a highly critical 2009 report on the country’s failed finance companies by then-Registrar of Companies, Neville Harris, who said they “were slow to detect adverse financial issues developing and they responded too timidly,” and questioned trustee diligence and accountability.
That report ultimately led to the inclusion of trustees in the securities law overhaul."ends
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