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Trustees Executors

Level 5 10 Customhouse Quay  PO Box 3222  DX  SP20011  Wellington  New Zealand, PHONE  04-495-0999  FAX 04 - 496-2952

 

 

15 December 2015

 


Investor Update December 2015

 


Dear Investor


Further to our letter on 30 June 2015, we now provide you with an update on the status of the fund, as we have also done for the Financial Markets Authority.


As previously advised and as disclosed in the financial statements, there are proceedings being taken against various parties. Third parties’ applications for access to the Court’s file have thus far been ordered to be declined. At this time we are unable to comment further on these legal proceedings or any likely outcome. However we can provide updates on matters such as costs and also the sale of remaining properties.


Costs.


We are aware that the expenses of the scheme, especially the legal expenses, may appear high. The decision to instigate legal proceedings was not taken lightly and included an assessment of the cost/benefit for investors, considering the quantum of losses incurred to the date of the review. An independent review of the loan portfolio was also undertaken.


Other costs have been incurred which relate primarily to the day to day running of the fund. This includes maintaining the accounting and investor records, and management and recovery of the remaining files where we are in possession. As an example, the recovery costs include payment of property rates, property security, and graffiti removal.

 

We have taken expert advice only where needed in the interests of obtaining the best result for investors. Progression of the Court proceedings is periodically reviewed, together with advice from our legal advisors to ensure focus remains on achieving the best result possible for investors.


Security Properties.


As previously noted, we are unable to simply sell the properties that remain. One of the properties is severely earthquake damaged and we continue our attempts to have the insurer honour its obligations under the insurance policy. We are prevented from selling the property on an as is basis because an Interlocutory Judgement effectively prevents us from leasing, selling, or demolishing this property until the claim is settled.

 

Other properties we have been attempting to sell comprise a range of bare land and viticulture sections. However historic and ongoing litigation between neighbours has been a significant deterrent to potential buyers.

 

We can advise that we have recently fully exited another property development. This was a development in a remote location and has taken some four years to resolve.


Payment Date.

 

As yet, we are unable to provide a final date for payment to investors. As explained above we are being hampered by the types of properties remaining, and various third party actions frustrating our attempts at sale. The financial statements reflect what we expect to receive from the sale of remaining security properties but exclude any proceeds of court actions. There is no recourse for investors if the claim is lost because the liability is limited to the assets of the fund.

 

Finally, it is important that your contact and bank details are kept up to date. Can you please ensure that any changes are notified in writing to Canterbury Mortgage Trust, PO Box 13229, Christchurch 8141.

 

 

Yours sincerely

Trustees Executors Limited

 

 

Sean Roberts
Client Services Manager
Governance and Investor Oversight

 

 

 

 

Canterbury Mortgage Trust Group Investment Fund, office of the Manager Canterbury Fund Managers Ltd

Unit 6a, 212 Antigua St, Christchurch 8011 • PO Box 13-229, Christchurch 8141
Phone 03 377 5201 • team@cmt.co.nz