Liquidators decry CA Pacific delaying tactics
The provisional liquidators of CA Pacific Finance and CA Pacific Securities yesterday accused the management of the two collapsed companies of hindering their work.
Coopers & Lybrand partners Denis Ho and Jan Blaauw said in a progress report: 'The process of determining the assets and liabilities of each company is . . . being hindered by the lack of co-operation of certain directors and staff of the CA Pacific group.
'It is . . . not possible to state the position of assets and liabilities of each company. It is a time-consuming process.' The comments came as disgruntled clients of the two failed firms met the liquidators after clashing with police on a march to the stock exchange yesterday.
The provisional liquidators said they were investigating if the firms could retrieve clients' securities that they had pledged to financial institutions.
Those financial institutions reserved the right to sell the securities to cover CA Pacific Finance's liabilities to them, they said.
If they sold the securities, the overall number that could be returned to the clients would be affected.
The provisional liquidators said they had held preliminary discussions with interested parties but had not yet seen a viable rescue proposal.
They said if the management of the two firms had a mechanism to resolve the issue quickly they should make an application to the court for an appropriate order.
They said they had not authorised the management - apparently the source of some newspaper reports - to release any information about the companies.
They said investors and creditors of the two companies should exercise the 'utmost caution' when assessing the reliability of those reports.
The provisional liquidators intend to present a detailed report in court on March 25 when the first hearing of petitions to wind the companies up is held.
They are waiting for advice on a number of difficult legal issues arising out of defaults by the two companies and are considering a number of matters with interested parties, such as the government and regulatory agencies.