NZF payment freeze to continue
NZF Group won’t be resuming interest payments despite the “imminent” lifting of an asset freeze order stemming from a court dispute.
Friday, March 1st 2013, 10:00AM
by Niko Kloeten
Last May, NZF suspended interest payments after the High Court placed a freezing order on its assets due to proceedings brought by KordaMentha, the receivers of NZF’s deposit-taking subsidiary NZF Money.
The dispute has now been settled and the freezing orders will shortly be lifted.
But NZF has decided to continue to suspend interest payments to note holders because it has breached the solvency test in the Companies Act as a result of it having “excess liabilities over assets”.
“NZF is committed to returning value to noteholders and continues to work towards realising assets to present options to noteholders for the future of NZF,” the company said in a stock exchange announcement.
“The current focus of NZF is maximising the return on its investment in the Mike Pero Mortgages business. On completion of this task, NZF will be in a position to present options to noteholders as to the future of NZF. The market will be kept informed of developments.”
The sale of Mike Pero Mortgages has been held up by a High Court application by Liberty Financial.
NZF chief executive Mark Thornton said the lifting of the freezing order was “imminent” and would be done within a few days.
“There are just a couple of procedural things to do first.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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