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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

 

 

13 July 2015

 

 

re: Canterbury Mortgage Trust

 

 

Dear Investor

 

 

It has been some time since we have provided you with some detail around the state of the fund and the actions being carried out as the Trustee.

 

We have previously advised you that following an investigation by the Trustee into various loans in the fund we requested an independent loan review. Following this the manager, Fund Managers Canterbury Limited, and auditor Deloitte, were replaced and proceedings taken against various parties. We advised you of these proceedings in the financial statements for the years ended 31 March 2013 and 2014.

 

The provision and scale of the supporting documents that are required to be presented by the various parties means this is a lengthy process. We are unable to comment any further on the proceedings as they are before the courts.

 

Following the change of auditor there was a need to provide assurance to the new auditor that the fund had adhered to all accounting standards. This resulted in a delay in issuing financial statements for years ending 31 March 2013 and 2014. During this time the Companies Office and Financial Markets Authority were kept informed of the reasons for the delays.

 

Attempts are being made to sell the remaining properties in the portfolio. Two of these properties form a significant part of the remaining investment portfolio. We have found it very difficult to attract buyers at an acceptable figure. These two properties also do not generate any income.

 

Until we have sold the remaining properties, and the legal proceedings are concluded, it is unlikely that a further payment will be made to you.

 

Please be assured that we are acting in the best interests of investors and all decisions are made after seeking expert advice with the intention of achieving a better return for investors.

 

We trust you have found this update of assistance.

 

Yours sincerely

Trustees Executors Limited

 

 

Sean Roberts

Corporate Trust

 

 

 

 

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