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

 

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:

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:

Get More From Scoop

 
 
Standards New Zealand

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