Legal action planned against Fincorp directors
Insolvency firm KordaMentha has told creditors of collapsed property group Fincorp that there could be a basis for pursuing legal action against its directors. The action is being considered to recover some of the $110 million still owed to 8000 investors as it is alleged that Fincorp Investments may have been insolvent toward the end of 2006 but did not go into administration until March last year. KordaMentha has told investors that directors of the group, when appearing in the NSW Supreme Court in December, had confirmed that the group continued to raise money from the public even though it did not have sufficient capital to complete its property developments or enough cash to operate its day-to-day business. If successful, the action could see an additional 3 to 8 cents in the dollar returned to secured investors.
Source: Sydney Morning Herald