Dominion Finance DFH.Whats the story at the moment for share holders?

[krusty]

DFH is suspended at the moment I understand. I got a letter from some company, and thats the last I heard. I guess the shareholders are near the end of the pile of claimants on any assets.
Should I forget the investment and DFH? Churk it up to experiance?

[Stranger_Danger]

Very few things are a certainty in investing.

That shareholders won't get a bean in this case is one of those few certainties.

[krusty]

It seemed to turn pear shape very quickly. Or was it my broker didnt advise me of the situation as it came to light? My broker was the one that floated it - that could well have had a bearing on what they told there retail customers?

[Dr_Who]

Who is your broker Krusty?

[krusty]

You will like this 'McDouall Stuart Securities, Wellington'. I read a few days ago in the kuru lounge in Akld that they are up some creek at the moment. Bit confused by that. Guess that explains why I have heard so little from them recently. I understand the law changed on what it takes to be a broker, and they are still trying to get over the hurdels?

[Lizard]

Companies office documents for DFH - you can read the liquidators report if you like, but it is only a more wordy version of what Stranger Danger has said:
http://www.business.govt.nz/companies/app/ui/pages/companies/1376793/documents

[krusty]

Do shareholders get a letter at the end of the process to state what happened, and to confirm that the money is history? How do the liquidators get paid for their lond and slow services?

[percy]

Do shareholders get a letter at the end of the process to state what happened, and to confirm that the money is history? How do the liquidators get paid for their lond and slow services?
Not usually they just die quietly.No money left for postage.

[Lizard]

Secom are prosecuting. Criminal and civil proceedings and still investigating the option of further proceedings. Current civil claims for $500k per director not going to get Krusty any more funds, but might help the debenture holders - or at least get the liquidators paid.


The Commission’s main purpose in making these applications is to take the first step towards compensation for investors who invested under the September 2007 prospectuses, as amended by the extension certificates on 20 December 2007. A declaration of civil liability is conclusive evidence that can be relied upon by either the Commission or investors themselves in any subsequent claims against the directors for compensation. The Commission will consider pursuing compensation claims in due course should it be in the public interest to do so.

[krusty]

Why the song and dance for debenture holders, yet not even a spit in the pan for the shareholders? I have always been a bit weary of debentures - a bit risky.

Interesting that today news comes of the directors being up on charges.

[macduffy]

Debentures a bit risky?

Well, yes, they can be but so of course are shares!

The fact is though that in a liquidation, debenture holders get paid out before shareholders. Hasn't stopped me investing in equities these last forty odd years!

Disc: Not holding either DFH shares or debentures but will admit to a brief flutter on the shares at the IPO, several years ago.

[winner69]

For gods sake the man got off because even though a director he had "never read" the trust deed ....or obviously even asked if such loans could be made .....no wonder Mr Whale is " relieved"

Was he just turning up and collecting his fat fees

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10877311