13 December 2011
The Financial Markets Authority announced today that debenture investors in Kiwi Finance Ltd will receive full reimbursement and are to be repaid approximately $1.2 million.
The payment covers all remaining principal owed to secured debenture investors, plus interest outstanding up until Kiwi Finance went into receivership in April 2008.
FMA CEO Sean Hughes said the outcome was an excellent one for Kiwi Finance investors.
Mr Hughes said; "As signalled in our Enforcement Policy earlier this year we want to focus our resources on conduct that harms the function of open, transparent and efficient capital markets. In this instance full restitution of investors' funds, together with an enforceable undertaking from the Directors, is a good conclusion to the investigation and a strong outcome for Kiwi Finance investors."
Three of Kiwi Finance's four former directors, Rodney Greensill, Chris Simkin and Barry Lambert, have undertaken not to act as managers of an issuer of debt securities for a period of five years. Rhys Greensill has undertaken not to act as a manager of an issuer of debt securities for a period of three years.
The Greensill family is paying all of the $1.2 million of reparation, which is reflected in the shorter period of Rhys Greensill's management undertaking.
Investors in Kiwi Finance will be sent information shortly with full details of the reimbursement process. Investors with any remaining questions are encouraged to contact the Trustee, Perpetual Trust, on (09) 927 9407.
The directors' Enforceable Undertakings can be found here.