Weekly Wrap: Things can only get better (or bitter)

The week began with part 2 of a bitter dispute between listed firms Dorchester Pacific and Viking Capital. Late last week the often-controversial Viking chief, Brent King, lashed out at the company he ran until early in 2006.

Friday, September 28th 2007, 3:13PM

King said his current firm, which has a 7% stake in Dorchester, "have lost confidence in this company". While King was having a go at some of Dorchester's business decisions the comments also took on a personal note as he slammed the group's directors for "threats" against former employees.

"We are fed up with this, my comment is 'put up or shut up'," King said.
On Monday Barry Graham, Dorchester chair, put up. In a letter to the NZX Graham called King's comments "contradictory, inaccurate and extraordinary".

"We note Viking's decision to sell down their holding of Dorchester and welcome this move," Graham said.

That cleared the air.

Propertyfinance Group (PFG) also attempted to provide some clarity this week around its troubled subsidiary, the in-receivership Propertyfinance Securities (PFS). PFG shares opened for trade again on the NZAX, almost a month to the day after a trading halt due to PFS' woes.

PFG chair, Barry Sundstrum, offered some hope to investors claiming the loan book of its finance company subsidiary was in good shape despite the receivership.

"The on-going solvency of PFG is heavily dependent on the successful rescheduling of its liabilities together with the sale of fixed assets and/or placement of fresh capital," he said.

PFG's first challenge will be to meet a $67,000 interest payment on its preference shares due on Sunday - the firm is 'seeking funding'.

For another listed parent of a fallen finance company, however, the news was the opposite to PFG. VTL, owner of the failed Nathan's finance company, confirmed on Wednesday that its shares would "remain suspended until further notice".

Away from the finance company sector, but still mired in NZX news, Good Returns revealed on Thursday that FundSource chief, Binu Paul, has resigned. The NZX, which bought FundSource a year ago, will also begin relocating the operation from Auckland to Wellington next week.

Still in Wellington, the office of Lianne Dalziel, Commerce Minister, told Good Returns that despite an impassioned argument from joint industry bodies, insurance advisers will still have to disclose commissions under proposed regulation - the beginnings, perhaps, of another bitter dispute.

It seems that homeloan rates are continuing to move in the right direction for anyone seeking a mortgage at the moment, more details can be found in the Mortgage Centre.

The People section has been busy this week, with The Investment Store, ASB Group Investments and Macquarie Private Wealth all adding to their teams.

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