Defunct New Zealand firm Felted Carpets – which collapsed just two years after its IPO – is being sued on behalf of over 3,000 investors. Harbour Litigation Funding had funded the claim up through 2015, with ‘Stage 2 Funding’ coming from a group of investors including Joint Action Funding. Now, the Supreme Court has ordered a $1.65MM security for costs order, which the plaintiffs are contesting.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Defunct New Zealand firm Felted Carpets – which collapsed just two years after its IPO – is being sued on behalf of over 3,000 investors. Harbour Litigation Funding had funded the claim up through 2015, with ‘Stage 2 Funding’ coming from a group of investors including Joint Action Funding. Now, the Supreme Court has ordered a $1.65MM security for costs order, which the plaintiffs are contesting.
As reported in Share Chat, former Fay Richwhite banker Tony Gavigan, who is organizing the funding, has contested the need to pay security for costs. Gavigan also claims insurance is on the way – though none has been procured as of yet.
Gavigan claims that his Stage 2 Funding is coming from a quintet of Auckland businessmen. The claim, meanwhile is headed for the Court of Appeal next month in regard to witness testimony. Gavigan wants more time to secure both funding and insurance, even through the claim is more than a decade old, and Feltex collapsed nearly 14 years ago.
