A special meeting was called today to consider the sale for$2.767 million and the repayment of a shareholder loan of $305,904.15.
NZF will now look to proceed with completing the sale over the next two weeks in accordance with the joint venture agreement regulating its interest in MPMH Limited.
“We refer to the notice of meeting which disclosed settlement risks in this respect. The market will be kept informed of developments.”
NZF said it would look to complete its major asset sale programme, including its interest in Resimac, and then produce a business plan for noteholders so that they could consider a basis for early conversion of their notes to shares. “This business plan is presently being worked on by NZF and is subject to uncertainty until the major asset sale programme is completed. It is likely that the plan will include an equity funding product in the residential property sector.”
One of the sticking points of the sale had been the valuation of the half share. NZF held it in its books at $7.2 million however an independent valuation came in at a far lower number.
NZF tried to clarify the differences but eventually accepted the lower valuation.
It told the NZX on Friday that it had consulted its auditors and changed the carrying value of its share of Mike Pero Mortgages in its books.
It has impaired the carrying value of its 50% shareholding in MPMH Limited from $7.2 million to $2.762 million.
The impairment will be recorded in the NZF financial statements for the year ending 31 March 2013.
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