MFS confirms payments not made

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MFS Pacific has pulled its prospectus and stopped accepting money, as its Australian parent company refused to provide funding for the recent round of maturities.

Saturday, February 2nd 2008, 9:41AM

Comments made in Phil's Blog on Friday morning, were finally confirmed later that day when MFS made an announcement to the NZX.

One of the things that made MFS in New Zealand unique is that its parent had agreed to provide MFS Pacific with financial support, "including the provision of any funding required by MFS Pacific to make payments to its investors as they fall due.

However, on Wednesday MFS Limited said that it would not immediately be making any funds available to MFS Pacific, and as a result MFS Pacific has been unable to make payments due to its investors on January 31.

MFS Pacific has withdrawn its prospectus and "entered into discussions with the company's trustee, Perpetual Trust." It has also appointed corporate advisors, "to advise it in relation to the most appropriate way forward in the current circumstances."

The statement says that the company is not in receivership, nor has MFS Limited "withdrawn, cancelled or sought to vary the Put Option that is in place between it and MFS Pacific."

MFS owns 38.50% of the shares in MFS New Zealand. MFS has not indicated that it has any intention of disposing of those shares, the statement says.

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