Lombard Finance & Investments has announced that it will stop distribution to its secured debenture investors unless and until the claims that have been made by Inland Revenue (IRD) get resolved. This is the same company that collapsed during 2008 when it had to pay close to $127 million to some 4400 investors.

The audit goes back to that time when IRD started its study of the Lombard since the start of its receivership. After the whole process got over, IRD said that it will claim close to $4.5 million. This is ones of the main components of specific transactions.

In its report, PwC, which is also the receiver, said that it will review the claim and then consider whether the receivers are going to be preferential or not. Till now, the claims are going to cost it interim of 9.5 cents per dollar.

Besides that, the IRD has also said in its advisory report that it is no longer in a situation where it can waive off any preferential claim when it comes in the interim distribution category.

That means that the investors have to wait for some more time.