See Korda Mentha page for updates for Forestlands investors.
The High Court in Nelson has placed Forestlands companies 2-12 and 14-20 into liquidation.
The Financial Markets Authority (FMA) sought the appointment of liquidators by the court to bring independence and certainty to the resolution of the companies’ affairs. See media release.
The FMA’s application to liquidate the Forestlands companies has moved forward and will now be heard on the 6th September 2018 at 11:00am at the Nelson High Court instead of 26-27 November 2018.
The FMA’s application to place Forestlands 2-20 into liquidation is currently scheduled to be heard on 26-27 November 2018 at the Nelson High Court.
Following a court order in April 2018, a payment of income tax liabilities of $1,641,789 was made to IRD. The remaining funds are still in an interest-bearing trust account. The money cannot be accessed without the permission of the FMA or court order.
FMA has applied at the Nelson Registry of the High Court to place the Forestlands companies numbered 2-20 into liquidation.
Shareholders and Creditors are entitled to a copy of the affidavit setting out the FMA’s case in seeking the liquidation of these companies. Please refer to the media release to obtain it.
The FMA and Serious Fraud Office maintain separate ongoing investigations into Forestlands.
High Court heard an application by 10 of the Forestlands companies in relation to money owed to the IRD. The total owed and due to Inland Revenue was $1,529,203 and interest of $112,586.
The High Court granted orders for the Forestlands Companies to pay the income tax liabilities from the $18 million held in the trust account.
Companies Office has now confirmed that the director has filed annual returns for each of the ‘numbered’ Forestlands Companies. This operates as a complete stop on the Registrar’s intention to remove those companies from the companies register.
We have also reminded Mr Kearns, through his lawyers, of the companies’ obligation to maintain share registers and have them available to be inspected.
We have received queries about the sale price of the forests. The Overseas Investment Office has recently published the sale price received by Forestlands. This information is now available on the OIO website which references a sale price of $23,500,000. See media release.
We understand that the Forestlands companies have now instructed an independent professional services firm to assist with developing an appropriate distribution method. As soon as an appropriate distribution method has been established, the FMA will decide whether to consent to the release of funds currently held on trust. See media release.
The FMA continues to seek to engage with the sole director of the Forestlands group and his legal representatives to ascertain what steps have been taken to put in place an appropriate process for determining and managing the distribution of the $18 million that is held on trust, accruing interest. See media release.
We have referred some matters to the Serious Fraud Office. We will continue to complete our inquiries in relation to financial markets issues.
We want to ensure that Forestlands has established a process for distribution of the funds in trust account that is proper and fair for all investors. See media release.
$18 million(which Forestlands say is to be paid to all its investors) were placed in a trust, earning interest. This decision to place these funds in trust was taken to protect and preserve the identified funds and investors’ interests while the FMA’s inquiries continue.
Following a query from an investor about a statement issued on Forestlands website dated 15/03/2017, the FMA wants to make clear that this was published without our knowledge. The FMA is currently investigating the events in question. See media release.