tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, February 29th, 7:13PM

Investments

rss
Latest Headlines

Commission says company must tell both sides of story

The Securities Commission has banned advertisements by Propertyfinance Securities (PFSL) for a proposed restructure of its moratorium arrangements saying they were one-sided.

Tuesday, April 21st 2009, 3:58AM

The Commission believes that the advertisements were likely to mislead investors about the relative advantages and disadvantages of the proposal as compared with the alternative option of receivership and did not comply with the law.

PFSL has been advertising its proposed restructure in roadshow presentations to investors and in briefing notes published on its website.

PFSL is a finance company that has been in moratorium since December 2007. Before then it had been in receivership since August 2007.

In a statement the Commission said that it understands PFSL had been developing a proposal to restructure its moratorium since failing to meet a scheduled payment in December 2008. Its proposal involves varying the terms of the existing securities held by debenture holders, which amounts to a new offer of securities under the securities law.

"The Commission believes that the roadshow presentations were likely to mislead investors because they set out only the positive aspects of the restructure proposal, and only the negative aspects of the receivership option. By omitting the potential disadvantages to investors of the proposal and the potential advantages of receivership they did not provide balanced information."

The Commission beleives the offer does not comply with the law because there is no registered prospectus.

It says moratorium documents are a form of offer documents and are therefore subject to the same rules as other offer documents.

“Investors need to be provided with full information about both the advantages and disadvantages of moratorium and receivership options so they can make informed investment decisions,” Securities Commission Chairman, Jane Diplock, says. “Investors should be provided with full information, including the assumptions directors have made if they say a moratorium will result in better returns and the risks compared with those of receivership.”

The PFSL directors have told the Commission that they had received legal advice on the presentation and believed the contents to be true and accurate, however they respect the views and findings of the Commission.

The Commission has alerted investors to what they should consider before voting on a moratorium proposal.

« Viaduct Capital loses Crown guaranteeRabo's new PIE »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com