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Lombard's Remaining Business Subject To Challenge

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Feb 12 NZPA - Lombard Group, which has already put its finance company into receivership, today said Inland Revenue Department (IRD) has made an application to wind up its Tasman Mortgage Brokers Ltd unit.

Lombard, which used be to chaired by Sir Douglas Graham, said it bought 70 percent of Tasman Mortgage Bro kers from the Blue Chip Group.

The issue with IRD relates to unpaid tax before Lombard bought the business and the vendor was obligated t o meet all taxation liabilities arising prior to settlement.

The vendor failed to honour this obligation to the IRD.

Lombard is talking to IRD and has recently made a formal demand on the vendor under the warranties in the Sale and Purchase Agreement.

Tasman Mortgages Ltd is not subject to the application for wind up by the IRD.

One of the major lenders to the overall Tasman Mortgages Group has also taken over management of the mortgages it funds, reducing the income due to Tasman significantly.

NZPA WGT pjg gt

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