Rising Cost of Ross Asset Collapse
Blair Cunningham – National Business Review – Thursday 14 March 2013
http://www.nbr.co.nz/article/what-ross-asset-collapse-has-cost-investors-so-far-bc-p-137228
The collapse of Wellington-based Ross Asset Management has so far cost investors $112,000 in legal fees, with a further $204,000 in liquidators’ fees yet to be charged.
Liquidators of Ross Asset Management and its associated entities have found $11 million in assets of the $450 million which around 900 investors thought was being managed on their behalf.
PwC liquidator John Fisk says since the company and associated entities went into receivership in November a further $86,000 has been paid in administration costs and expenses.
“This is primarily the costs associated with maintaining the Ross Group Companies’ offices on The Terrace and the employment of former staff to assist in investigations.
“Staff resigned from RAM when it went into receivership but PwC has since rehired at least two employees to help with investigations.
“The liquidators intend to vacate the offices shortly, which should reduce on-going overhead costs.”
The RAM liquidation committee, chaired by former commercial lawyer Jiohn Strahl, held its first meeting late last month – the details of which have now been released.
Tax returns
Mr Fisk has agreed to write to the IRD requesting an extension of time for all investors to amend their tax returns for the period ending March 31, 2008, the earliest period to which it would be possible to obtain a reassessment.
He has also told investors to consider what impact the receivership and liquidation of the group companies may have on their income tax return for the period ended March 31, 2012, if it has not already been filed.
Mr Fisk says PwC has yet to charge its $204,000 remuneration bill or pay $22,511 of disbursements.
Moves will also be made soon to recover debts from David Ross.
“According to the most recent set of financial statements, David and Jillian Ross are jointly indebted to Ross Asset Management in the sum of $3,491,579. Recovery action against Mr and Mrs Ross is expected shortly in relation to the repayment of this amount.”
He says the liquidation committee has encouraged PwC to act quickly to recover the debt, although he is uncertain about just how much money will be repaid.
Mr Fisk has previously indicated the sale of assets may not be out of the question to recover the debt.
RAM’s bank accounts in the 12 months leading to receivership show $17.5 million of investment sales, against $29.48 million of investor payments.