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

 

NZF Group fails to get quorum at noteholders' meeting

NZF Group fails to get quorum at noteholders' meeting

By Paul McBeth

Aug. 7 (BusinessDesk) - NZF Group has delayed a special meeting of noteholders for a fortnight after failing to raise a quorum today.

The Auckland-based financial services firm's board sought to liquidate the company earlier this year, and was blocked when a major noteholder asked for a special meeting to try and squeeze more value from the firm. Investors holding about 24.1 percent attended today's meeting, falling short of the 25 percent required for a quorum, and the event has been adjourned for 14 working days, NZF said in a statement.

Nessock Custodians Ltd, which held more than 10 percent of the NZF's $18 million in capital notes, is asking noteholders to delay liquidation until the end of August to try and find more value in the business, limit NZF's expenses to $50,000 a month until Sept. 30, while granting directors a further $50,000 to look at a transaction to boost NZF's value, and hold another meeting in September to make a final decision.

NZF's board didn't make a recommendation on the resolutions.

The NZDX-listed notes, paying annual interest of 6 percent, last traded in June last year at a yield of 260 percent. NZF's shares last traded at 1 cent, valuing the firm at $1.1 million.

The firm's board has suspended all action to wind up NZF until the special meeting has been held, and expects to call the meeting within five weeks.

In April, NZF's board decided to liquidate the firm after the resignation of auditor RSM Prince scuttled a deal for a major restructure and was unable to find a replacement.

The extended lifeline means NZF will have to complete and file audited financial statements for the 2014 financial year, and it has hired accountancy firm William Buck Christmas Gouwland to do so.

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

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: