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

 


NZF Group faces liquidation as auditor exits

NZF Group auditor exit scuttles restructuring, board proposes liquidation

April 3 (BusinessDesk) - NZF Group faces liquidation after the resignation of its auditor scuttled a proposal for a substantial restructure, and left the board with no option but to liquidate the company.

The Auckland-based financial services firm planned to seek an early redemption of $18 million owed to capital noteholders in cash and shares as part of a restructure that would have seen it buy a significant enterprise generating annual sales of more than $100 million, it said in a statement.

RSM Prince resigned as NZF’s auditor, leaving NZF to find a replacement on the cusp of a major restructure and with a few weeks before the end of the financial year.

NZF was rebuffed by all but one audit firm, owing to its failed finance company and its inability to repay the capital notes in full, resulting in talks with the target business ending, it said.

Earlier this week, NZF restated its first-half accounts for a second time after consultation with the Financial Markets Authority, citing errors in comparative amounts and the disclosure shown in the accounts.

Because the restructure won’t go ahead, the NZF board said the only foreseeable alternative is to work with the capital notes’ trustee to distribute the majority of its cash to the noteholders and recommend liquidation to shareholders, it said. It held cash and equivalents of $2.59 million as at Sept. 30, about 14 percent of what is owed to noteholders.

“The board is very disappointed that its efforts to implement the proposed organisational structure of the company restructure of the capital notes have had to cease. It believes that the proposed restructuring would have contributed a significant quantum of value to the stakeholders of the company,” NZF directors said.

The board will convene a special meeting about the proposed winding down.

“As the company has negative equity, the market is cautioned that the company’s shares currently have no value and if the liquidation is approved, no prospect of having value,” it said. The shares last traded at 1 cent apiece.

In November the regulatory arm of stock exchange operator NZX fined NZF Group $35,000 and censured the company after a delay in filing its 2013 annual report, which saw trading in the shares suspended. At the time NZF Group said it was unable to fully value its divestment in its 50 percent stake in MPMH, a holding company for Mike Pero Mortgages, as it no longer had access to the financial statements.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

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