Rates Round Up

High court rules Mascot Finance debenture holders to receive payments
The High Court in Christchurch has ruled debenture holders in Mascot Finance owed some $65.4 million should continue to receive interest payments past the date of its March 2 receivership.

The three options put forward to Justice Christine Fletcher were to cease interest accruing on the appointment of the receivers; interest accrues after the appointment, but only until the fixed date the principal was expressed under the certificates; interest accrues until actual and full repayment of the principal.

Justice Fletcher ruled that Mascot was liable under the terms of the stock certificate.

The case had implications for the government under the deposit guarantee scheme with most of the debenture holders likely to have applied directly to Treasury with their stock certificates.