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Perpetual Trust defends Strategic receivership; Broadlands Finance flags liquidity risk; OPI Pacific investors waiting on receiver update.
Monday, March 29th 2010, 11:22AM
by Paul McBeth
Perpetual Trust defends Strategic receivership
Perpetual Trust, which sent Strategic Finance to receivers John Fisk and Colin McCloy of PricewaterhouseCoopers this month, has defended its decision in a letter to investors.
The trustee of the failed finance company said it made the decision after receiving two proposals from Strategic and recommended that one be put forward to investors for consideration.
"Both proposals were subject to a number of conditions and there was no certainty that either of them would be able to be completed," chief executive Louise Edwards said in her letter. "After a thorough review, we concluded that the interests of the investors would be better served by appointing receivers to realise Strategic's assets."
Since taking on the role as receivers, PwC's Fisk and McCloy have indicated there will not be any money for the finance company's preference share holders and have asked the NZX to cancel quotation of the securities and delist the company.
Broadlands Finance flags liquidity risk
Broadlands Finance has flagged the end of the government's retail deposit guarantee as a liquidity risk when the first tranche ends in October this year after it missed out on the required BB credit rating.
In its latest investment statement, the company said it may "experience a reduction in new investments or reinvestments in debenture stock" once the initial guarantee ends on Oct. 11.
When Broadlands was first accepted into the scheme, its funding rose to $15.1 million from $12.5 million, and the company said its exit from the guarantee "could have a material adverse effect on the financial performance and financial performance and financial condition of the company, including its liquidity."
OPI Pacific investors waiting on receiver update
Secured debenture holders in OPI Pacific Finance, formerly MFS Pacific Finance, are waiting on a formal update from receivers Colin McCloy and Maurice Noone of PricewaterhouseCoopers.
In a note dated March 16 on the PwC website, the receivers say "a formal update will be made to secured debenture holders shortly" though nothing else has been forthcoming.
In the first receivers report, McCloy said there would probably be a "significant shortfall from recovery from the loan book."
Paul is a staff writer for Good Returns based in Wellington.
| « Strategic receivers say no money available for pref shareholders | Power refers Strategic Finance to Securities Commission » |
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