LKM director in court

ROLF Koops, the director of failed Coffs Harbour investment company LKM Capital, this week underwent examination in the NSW Supreme Court.

Mr Koops, 49, was asked questions ‘under privilege’ on Thursday about certain business transactions, which occurred prior to the company going into receivership in 2008.

At the time of insolvency 1200 debenture holders had $63.6 million invested in the fund.

Now living with his partner Sandra Martin, 48, in the United Kingdom, Mr Koops will again appear in the Supreme Court on November 15.

The Australian Securities and Investments Commission has reportedly considered laying criminal charges of reckless or intentional dishonesty against the company directors for allegedly failing to act in the best interests of their mostly elderly investors.

The LKM receiver is also suing the pair for damages.

Since April last year, receivers have only seen a return of 20 cents in the dollar.

In its latest public update, BRI Ferrier, business reconstruction and insolvency firm, stated it was holding approximately $6.75- million in term deposits (accruing interest).

“At this stage, we believe it would be against debenture holders’ long-term interests to pay a further distribution in the short term,” BRI Ferrier stated.

The company said it was holding discussions with the financier of several retirement homes in the LKM Capital portfolio and was assessing a proposal to subdivide retirement villages into strata units to receive better returns.

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