Almost all claimants in the failed $91 million Credits Sails
investment fund have been paid their 85c in the dollar from
the $60 million settlement fund.
The $91 million fund collapsed more than four years ago. Late
last year Credit Agricole CIB (formerly Calyon) and Forsyth
Barr came to an agreement with the Commerce Commission that
they would put $60 million into a trust account for payment
to eligible investors.
It was estimated earlier this year that almost $16 million
would go to Otago and Southland investors.
Credit Sails appeared to be a low-risk investment with 8.5%
interest income, but was an extremely complicated investment
based on sophisticated debt securities, which quickly plunged
to become valueless following the collapse of banks Lehman
Brothers in the US and two in Iceland.
There were about 2550 Credit Sails investors, with claims
ranging in value from $132 to $2.5 million.
The settlement included investors waiving their rights to
future legal action.
Forsyth Barr managing director Neil Paviour-Smith said he was
pleased with the progress of claims to date and the high
level of acceptances from eligible investors.
To mid-October, 99% of eligible investors had accepted the
settlement and been paid, which totalled more than $59.5
million of the $60 million fund.
''Of the 22 remaining, we are advised that 15 have informally
accepted and are completing documents for the trustee,'' he
said in a statement last Friday.
He said the settlement was a ''good outcome for investors,
providing certainty following a period of significant market
Mr Paviour-Smith urged the remaining eligible investors to
take up the settlement before it closes, on November 20.