Strategic Finance investors to get payout
Secured investors in Strategic Finance are in line for a payout after the first part of a settlement was paid to receivers.
PwC have received $10 million as part of a $22m settlement with the former directors and auditors of the failed finance company.
The payment will enable a distribution to secured investors to be made within the next two weeks, Strategic's receivers PwC and the Financial Markets Authority said.
Two further instalments of $6m, due at the end of August and November, will allow further distributions to be made, PwC said.
The $22m settlement, which was agreed in June, became unconditional last Friday.
The agreement settles civil claims made by the receivers against Strategic's directors for alleged breaches under the Companies Act and claims against the auditors, BDO Spicers, for their 2007 audit of the company.
It also settles claims made by the FMA against Strategic's directors for alleged breaches of the Securities Act.
In June PwC partner John Fisk said the settlement, when added to realisations from Strategic's loan book, would mean investors should be repaid 15 cents in the dollar by the end of the year.
Updates would be provided to investors as further funds were received and as distributions were made, PwC and the FMA said.