Geneva investors say yes

Geneva Finance investors have opted for the company's recapitalisation plans over receivership.

Monday, April 28th 2008, 4:19PM

Debenture holders and noteholders approved a capital reconstruction plan for the company at a special meeting on Monday.

Under the proposal they have converted a proportion of debenture and subordinated note holdings into NZAX-listed shares in Geneva.

Geneva says all note holders who voted approved the proposal and 93.6% of debenture holders voted in favour.

"Our investors recognised that this proposal will ensure a positive outcome for them," Geneva chief executive Shaun Riley says.

"The company remains operational and continues to lend following the stabilisation and consolidation that took place during the six-month moratorium period.

He says during the moratorium Geneva has generated a $26 million cash reserve.

The company is in "a strong and stable position."

Bank of Scotland, the company's primary banker, has indicated its continued support by retaining a $35 million funding facility for a further three-year term.

The key elements of the proposal are:

Geneva will list on the NZAX, with 15% of debenture-holders' and 55% of subordinated note-holders' investments converted to ordinary shares
The remaining investments will be repaid in a scheduled plan
All interest will continue to be paid monthly, at the increased minimum rates of 11% for debenture holders and 13% for subordinated note holders
Forty percent of the outstanding debenture principal will be repaid with interest over eleven months from May 2008.

Geneva Finance will list on the NZX early in May.

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Geneva investors say yes

Geneva Finance investors have opted for the company's recapitalisation plans over receivership.

Monday, April 28th 2008, 4:19PM

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