Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Geneva Finance early repayment to investors

22 February 2013

Geneva Finance Announces Its 31 March 2013 Moratorium Repayment To Investors Will Be Paid Out On 28th February One Month Ahead Of Schedule

NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) announced that the moratorium repayment of $4.9 million due on 31 March, will be paid on the 28th February, four weeks ahead of schedule. This announcement maintains Geneva’s record of early repayment, following the early repayments of the September 2010, March 2011, September 2011, March 2012 and September 12 scheduled debenture principal repayments.

This repayment is being made under resolution 1.4(b) of the interest bearing repayment plan to repay moratorium debenture holders and BOSIAL early, either in full or in part on a pro rata basis.

Inclusive of this payment, Geneva Finance has repaid $139.0 million of investor principal and interest payments since the company entered moratorium in November 2007 owing a net $132.4 million to investors. These repayments are inclusive of interest payments to investors (including the company’s bankers) of $40.6 million, at a weighted average interest rate of 10.7%, and principal repayments to public debenture holders totaling $70.7 million.

This early repayment follows on from a number of successful funding initiatives including:
• The placement of $5.3 million of new business receivables ($3.3m in August 12 and $2.0m in January 13) into “Prime Asset Trust Limited” a scheme, that utilised this security to raise a total of $4.6m million of new funding.
• The raising of $2.8m of new equity in two tranches with the first being February 2012 and the second in November 2012.

Funding from these sources has been supplemented with positive operating cash flows and it is the combined impact of these initiatives that has put the business in position to maintain its track record of paying investors ahead of schedule.

Geneva Managing Director David O’Connell says, “It is pleasing to be in a position to continue to repay investors ahead of schedule but we are operating in a difficult financial environment and if we are to be able to continue to achieve our goals it is essential that we maintain our focus on the key challenges ahead of us.”

Overview
The re emergence of Geneva from Moratorium in November 2007, has been built around the achievement of a series of milestones, with each being achieved before progressing to the next objective. These milestones fall into three stages:

1. Firstly, from November 2007 through to January 2012, the focus was on repositioning the business model to a lower risk market segment, cost reduction, improving distribution systems for the company’s products, broaden the scope of the business with the acquisition of an insurance operation and a debt collection business to supplement the core lending activities and most importantly the repayment of investor debt.
2. Secondly, From January 12 the focus moved to improving the company’s equity position and as at the end of November 2012, Geneva had raised new equity of $2.8m, and secured a cornerstone shareholder, Federal Pacific Group Limited who now hold a 36% stake in the company.

3. Thirdly building on the above, we are now looking to expand the core business to create shareholder value. Core to this challenge, is attracting new funding at affordable rates. With this in mind on the 11th February 2013, Geneva announced it would supplement the funding initiates referred to above with the issue of this prospectus.

About Geneva

Geneva is a New Zealand-owned finance company that provides finance and financial services to the consumer credit and small to medium business markets. Geneva commenced business on 7 October 2002. Geneva's loans are originated through three distribution channels (Direct, Broker and Dealer), processed by the central sales desk then administered through a national operations centre located at Mt Wellington, Auckland.

The company borrows money by the issue of debenture stock. It also has a banking facility with BOS International (Australia) Limited.

Geneva (GFL) is listed on the NZAX. There are 224,698,631 issued shares held by 2,629 investors.

About Federal Pacific

FedPac’s operations throughout the Pacific region include investments in Banking, Personal and Business Finance, Money Transfer and Foreign Exchange Trading. The company was incorporated in 1993 and is based in Auckland, New Zealand.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news