Halifax Investment Services Pty Ltd's liquidator, KPMG, announced today that it will pay a second interim claim distribution to eligible investors, equivalent to half of their account balance as of November 27, 2018.

The second interim allocation will begin on November 23, 2022, with the aim of distributing funds to most eligible investors (who have submitted claims through the investor portal) by the end of 2022. Once issued, investors will receive an "payment notification" email.

Like the first interim distribution, KPMG is unable to provide investors with accurate payment dates. The following are common questions and answers regarding the allocation of interim claims:

How is the progress of the first interim claim allocation?

The first interim claim allocation has been basically completed. So far, 97% of eligible investors (calculated by value) have submitted claims, their claims have been verified by the liquidators, and they have received the first interim distribution.

We are continuing to verify the claims of approximately 570 submitted investors in order to finalize the first interim allocation.

We have reserved an emergency fund to deal with a few disputed claims.

Is the second interim distribution the final payment that eligible investors will receive?

No. Once our recovery actions have yielded results, it is expected that a third distribution will be paid to eligible investors.

The time and amount of the third allocation depend on the results of various recovery actions being taken by the liquidators, including claims against former lawyers and auditors.

3. What is the approximate amount for the third distribution to eligible investors currently?

At this stage, we estimate that eligible investors will receive further distributions equivalent to at least 5% of their account balance as of November 27, 2018. The amount of the third distribution depends on some unknown factors, including any gains obtained from the recovery process and further liquidation costs.

Qualified investors will ultimately receive their corresponding equity in the available fund pool, which is the value of all Halifax assets once liquidated minus the costs of liquidation. Therefore, we estimate that eligible investors will receive a total of at least 105% of their account balance as of November 27, 2018.

Is it too late to submit the claim now?

The investor portal is still open for submitting overdue claims, and we require all investors to submit their claims as soon as possible.

As of November 23, 2022, 3429 investors have not yet submitted claims through the investor portal website.

Further information regarding the closure of the investor portal will be provided near the relevant time.

5. How is the litigation progress against former lawyers and auditors?

The Australian Federal Court and the High Court of New Zealand have approved the liquidator to execute a litigation funding agreement to fund the liquidator's recovery proceedings against Halifax Australia's former auditors and lawyers. The liquidator submitted a claim statement to the Australian Federal Court on September 5, 2022 and is currently working with their legal team to advance the claim. Further information regarding the claims and other matters being investigated by the liquidator will be provided in our upcoming report to investors and creditors.

If successful, any funds recovered from the claim may be allocated to Halifax Australia and Halifax New Zealand's fund pools for allocation to eligible investors after payment of litigation related agreement costs and expenses.

Can I access my historical account information for tax purposes?

In order to minimize ongoing costs, the liquidators plan to reduce Halifax's license, subscription fees, and platform reporting functions early next year.

We will obtain a complete list of customer account transactions, but some information, including daily reports, may not be continuously accessible.

We encourage investors who have access to their own accounts to download any relevant reports that need to be recorded, or to contact the Halifax service desk team（ helpdesk@halifaxonline.com.au ）Seek help. We will provide further reminders before the Halifax platform shuts down.

The liquidator is unable to provide advice on preparing tax returns and recommends that investors seek independent advice from qualified accountants or legal practitioners.

Source: FX110