2 Feb 2009

Feltex directors charged over financial statements

6:27 pm on 2 February 2009

The directors of Feltex Carpets Limited have appeared in court on charges regarding the company's financial statements.

John Michael Feeney, John Carlaw Hagen, Peter David Hunter, Timothy Ernest Saunders and Peter Thomas face two charges each relating to information provided in the company's 2005 half-yearly financial statements.

They face penalties of up to $100,000 if convicted.

The Registrar of Companies says in its 2005 half-yearly statements, Feltex Carpet Ltd failed to disclose a breach of its banking convenants and did not properly classify its debt.

In 2006, Feltex went into receivership and in December that year it went into liquidation.

Feltex was bought by rival company Godfrey Hirst, resulting in more than 260 job losses in Christchurch, Foxton and Feilding.

The directors each entered not guilty pleas at Auckland District Court on Monday and said they would vigorously defend the charges.

The matter has been remanded to 7 April for a status hearing.