ASIC has reached agreements to settle litigation against certain directors of the Westpoint Group companies and KPMG.
The settlement of these actions will result in an additional recovery for the benefit of investors of up to an additional $67.45 million.
"This settlement will avoid the delays associated with conducting the proceedings through to a trial in September 2011 and provides an additional return for investors in the plaintiff mezzanine companies who lost money as a result of the collapse of the group in 2005," ASIC chairman Tony D'Aloisio said.
"A confidential commercial resolution is, because of the age and circumstances of the investors, the preferred resolution in a case such as this where litigation can take years."
The settlement will involve an amount of $57 million being made available in the next 30 days, with the balance available to the liquidators of the relevant companies subject to a number of conditions, which are confidential.
The investors in Westpoint-related financial products had total capital invested of $388 million outstanding as at January 2006 when the group collapsed.
The settlement will bring to an end the current Federal Court proceedings, which are being conducted by ASIC in the names of nine of the Westpoint mezzanine companies: Ann Street Mezzanine, Bayshore Mezzanine, Bayview Heritage Mezzanine, Market Street Mezzanine, Market Street Mezzanine No 2, Mount Street Mezzanine, North Sydney Finance Limited York Street Mezzanine and Cinema City Mezzanine.
Today's announcement follows the settlements with State Trustees Limited and a number of financial planners, which produced in excess of $25.5 million.
Another $49.2 million obtained through the liquidation process has also been distributed, a figure that is expected to reach $56 million.
Returns from Westpoint companies not in liquidation are expected to reach $22.5 million.
In all, investors are expected to see a return of around $160 million to $170 million of the $388 million in losses following today's settlement.
