The liquidator of North Sydney Finance (NSF), a subsidiary of the failed Westpoint Group, has gained approval for the release of a third and potentially final dividend payment to creditors and noteholders.
In a letter from Ferrier Hodgson to NSF creditors and noteholders, dated 2 December, the payment of the third dividend had been calculated at 22.45 cents in the dollar.
"I have been provided authority by Sandhurst Trustees as trustee of the NSF noteholders to distribute the third dividend direct to noteholders," Ferrier Hodgson representative Martin Jones said.
While Jones said the payment might be the final dividend distribution to NSF's unsecured creditors, he speculated there could be further funds available to NSF investors.
"However, as I have mentioned previously, should the terms of the confidential settlement deed allow ASIC to release the remaining [$10 million], or part thereof, to the Westpoint-related entities, there may be a further dividend distribution," he said.
"I will keep creditors apprised as to future developments, however, it is unlikely I will have any knowledge of a future dividend until the end of 2012."
Meanwhile, he said as the settlement funds had been held in an interest-bearing account and derived $111,000 in interest income, which might need to be declared to the Australian Taxation Office, he had set aside some funds to counter any tax issues.
"I have held over $34,000 in the event that there is an income tax obligation and advise that I am currently seeking advice regarding this matter," he said.
He said an amount of $101,000 had also been retained for liquidation costs, however, if costs were lower than anticipated, the funds might become available to creditors.
Last month, ASIC said it was yet to decide whether it would release around $10 million of Westpoint investor funds to the liquidators of the failed property group.
"On 30 September 2011, ASIC made payments totalling approximately $57 million to the liquidators (plus accrued interest) in accordance with the Federal Court orders made on 1 September 2011 and the terms of the settlements," an ASIC statement to Westpoint investors said at the time.
"ASIC continues to hold the balance of the proceeds from the settlements (approximately $10 million) for the benefit of certain Westpoint Group companies subject to a number of conditions which are confidential."
