Receivership better ending for Kiwi Finance: Trustee

Kiwi Finance, the little New Plymouth-based finance company which fell over at the end of last week, owed $2 million to 41 debenture holders.

Monday, April 21st 2008, 7:08PM
The trustee for the company, Perpetual Trust, says receivership was the best option for the company because of the size of its non-performing loan book.

Perpetual Trust chief executive Louise Edwards says another problem was that the cash within the company was insufficient to meet debenture repayments. She says Kiwi has been winding down its loan book for some time, but has now defaulted on repayment of investors' money.

Edwards says she was disappointed with a statement put out by Kiwi's directors over the weekend.

It appears Kiwi's directors wanted a moratorium, but Perpetual said no.

Edwards says. Kiwi Finance's proposed moratorium was given careful consideration.

"We worked very closely with the company to investigate all avenues to ensure the best outcome for debenture holders.

The moratorium option was given due consideration." "Ultimately, given the extent of the non-performing loans, a moratorium was not appropriate in this case and Kiwi Finance was placed into receivership."

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