NZF Group settles with NZF Money receivers

Last updated 12:16 18/02/2013

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Frozen NZX-listed NZF Group has settled its dispute with receivers of collapsed finance company NZF Money.

The troubled firm's auditors Grant Thornton have also quit the company, according to an announcement to the NZX.

NZF Group has been frozen since April 2012 after NZ Money's receivers filed a claim alleging the finance company's parent had stripped out $3 million of assets prior to its collapse in August 2011.

The claim sought damages of $3.03m against NZF Group and directors Mark Thornton, Pat O'Connor, Peter Huljich, John Callaghan and Richard Waddel.

NZF Money owes debenture holders $16.4m, and the company is the subject of investigations by the Serious Fraud Office and the Financial Markets Authority.

In two statements to the NZX this morning NZF Group said it would pay $975,000 to receivers KordaMentha in return for the claim being discontinued, and the freezing order would be lifted once the sum was paid.

In the statement announcing Grant Thornton had quit, NZF Group chief executive Thornton said: "Grant Thornton has also advised that it does not seek to invoke its right to explain to shareholders the reasoning behind this resignation."

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