NAB ‘reneged’ on lending terms says CFO
(12 May 2010 – Australia) David Anderson, former chief financial officer of MFS financial group (now renamed Octaviar) has told the Supreme Court that National Australia Bank ‘reneged’ on lending terms.
Bentleys Corporate Recovery’s liquidator, Kate Barnet, is holding a public examination into the failure of MFS in an effort to pinpoint when the firm became insolvent.
The Supreme Court heard from Mr Anderson as he continued to give evidence, claiming that NAB ‘promised’ to give them a facility.
The former CFO also claimed that the bank would agree not to aggregate loans to other MFS companies and added that he understood NAB had ‘reneged’ on the aggregated loans issue.
Mr Anderson told the court that he was not in charge of troubled Stella group, then part of MFS, which NAB had an involvement in refinancing.; adding that it had its own CFO and separate financial systems.
He also told the court that a A$250 million facility from Fortress Credit may not have been used for the purpose he outlined in an email to Fortress executives, however added that this had not affected the loan agreement.
When asked what the money was spent on Mr Anderson said that the accounting systems would need to be looked at in order to answer that question.
The court was also told that MFS had agreed to ‘guarantee’ a A$53m loan by Fortress but Mr Anderson said he was not involved in that deal.
The Supreme Court heard from Mr Anderson as he continued to give evidence, claiming that NAB ‘promised’ to give them a facility.
The former CFO also claimed that the bank would agree not to aggregate loans to other MFS companies and added that he understood NAB had ‘reneged’ on the aggregated loans issue.
Mr Anderson told the court that he was not in charge of troubled Stella group, then part of MFS, which NAB had an involvement in refinancing.; adding that it had its own CFO and separate financial systems.
He also told the court that a A$250 million facility from Fortress Credit may not have been used for the purpose he outlined in an email to Fortress executives, however added that this had not affected the loan agreement.
When asked what the money was spent on Mr Anderson said that the accounting systems would need to be looked at in order to answer that question.
The court was also told that MFS had agreed to ‘guarantee’ a A$53m loan by Fortress but Mr Anderson said he was not involved in that deal.
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