Investors to receive interim dividend
Nathans Finance investors to receive interim dividend
during the March 2008 quarter
Receivers anticipate further repayments will follow
PricewaterhouseCoopers partners Colin McCloy and John Waller are writing to secured debenture holders in Nathans Finance NZ Ltd (“Nathans”) to advise that these investors could recover an initial dividend of between 10 and 15 cents in the dollar during the first quarter of 2008.
Colin McCloy stressed that the initial repayment in the March 2008 quarter would be followed by further dividends, but the timing and amount of the subsequent repayments was unable to be confirmed at this stage.
“This will depend on recoveries from loans to VTL Group Limited and related parties. In particular, one of VTL Group Ltd’s investments, Shop 24, has growth potential and discussions are underway with interested parties on how best to realise that potential. It would be premature to speculate on the value of Shop24 until negotiations with the interested parties are complete.”
He said the receivers hoped to be able to provide more clarity around the timing and amount of future payments in the March 2008 quarter. “We appreciate that investors are in a difficult position. The complicated nature of the company’s arrangements makes it difficult to accurately assess potential returns. However we have sought to provide investors with as much guidance and information as we can at this stage.”
Nathans went into receivership when the finance company’s trustee, Perpetual Trust Limited, appointed receivers on 20 August 2007. Nathans is a subsidiary of VTL Group Limited, an NZX-listed company. Trading in VTL Group Limited shares is currently suspended. VTL Group Limited owns a number of vending machine related businesses which operate in New Zealand, Australia, North America and Europe.