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: Saturday, December 14th, 6:08PM

Investments

rss
Latest Headlines

Vision Securities, sunk by failed loan settlement

Vision Securities, the specialist retirement village property lender, has been sent to the receivers after it failed to settle a major loan last week. Its 953 investors will be safe as they are covered by the government's retail deposit guarantee.  

Thursday, April 1st 2010, 3:08PM

by BusinessDesk

Trustee Perpetual Trust called in receivers Rod Pardington and David Levin of Deloitte after Vision failed to settle a mortgaged property last week that was expected to generate some $6.75 million and keep it afloat. Vision's directors told Perpetual's head of corporate trust Matthew Lancaster they believed the company would be unable to meet its ongoing debenture obligations.  

"The directors report that the company's borrowers are finding it increasingly difficult to refinance or repay their maturing loans," Lancaster said in a statement. "VSL has concluded that receivership is the best option to protect all investors and to ensure all investors are treated fairly."  

In February, Vision was put into the high risk category by rating agency Standard & Poor's, which issued it a B credit rating with a negative outlook, amid the flurry of companies lining up to meet Reserve Bank regulations that require non-bank deposit takers to be rated.

Today's announcement prompted S&P to downgrade the company's rating to a D, with any further write-downs of the company's loan book likely to breach its trust deed.  

Still, the company's investors who are owed about $28 million will get all of their money back under the terms of the government's deposit guarantee. The existing guarantee repays investors, with the government taking their position as creditor as the receiver tries to squeeze value from the wind-down of the business.  

Treasury director of financial operations Brian McCulloch said he expects an orderly process of payment to debenture holders.  

Vision Securities joins Mascot Finance and Strata Finance in calling on the government scheme. The Treasury has made a provision of $771 million for the deposit guarantee, according to the financial statements ended January 31.

 

 

« Dorchester recapitalisation runs behind scheduleRates round up »

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