Ross group investors bid to have their say
Monday 26 Nov 2012 1:20 p.m.
A brief hearing has taken place at the High Court at Wellington (Photo: Jared Mason)
Some Ross Asset Management investors have asked the High Court to be admitted as a party to proceedings and called for the liquidation of the failed group to be put out to tender.
A tentative new date of December 10 has been set for the Financial Markets Authority (FMA) to update the High Court on the Ross Asset Management receivership, by which time receivers PwC are expected to have applied to liquidate the group.
At a brief hearing in the High Court at Wellington on Monday, the FMA said any liquidation application was likely to come from PwC.
The regulator is expected to be in discussions with receivers, PwC's John Fisk and David Bridgman, later on Monday.
In court, Bruce Tichbon, who represents more than 50 percent of investors in David Ross's group of investment companies, sought to be admitted to proceedings.
Mr Tichbon told BusinessDesk he was concerned his group wasn't being kept in the loop and it was "only by luck" he found out about Monday's hearing.
In his memo to the court he also sought for any liquidation to be put out to tender with a clear brief on strategy and costs.
Members of his group had observed receiverships and liquidations "where professional fees have devoured all the money left over," he said.
The tender for liquidation should clearly state "how investors' interests will be represented".
The Ross group's database purports to show investments worth $449.6 million. But Mr Ross has told PwC not to expect to find any other assets other than the $10.2 million plus $200,000 in cash deposits initially identified by Messrs Fisk and Bridgman.
The Serious Fraud Office has launched a formal investigation, having helped the FMA with its inquiries.